Provident fund (PF) wage ceiling limit increased to Rs 15,000
The finance ministry has approved the proposal of the Employees' Provident Fund Organisation's (EPFO) to raise the monthly wage ceiling to Rs 15,000 (as against the earlier cap of Rs 6,500 per month).
Accordingly, an employee earning monthly wage ceiling up to Rs 15,000 will now be mandatorily required to contribute towards employee provident fund scheme and the employer will also have to make a matching contribution. This move is likely to bring enhanced coverage of large employee population under the social security ambit.
Further, for the convenience of the provident fund subscribers, Employees' Provident Fund Organisation proposes to launch the 'uniform account number' service for contributing members to facilitate portability of provident fund accounts.
By - CA VMVS RAO
(As per Budget Speech of Mr.Arun Jaitley,Ministry of Finance on July 10,2014 (Point No.40)