Good News for Salaried Employees who have PF deductions every month. The Government of India is trying to improve employee benefits and give more convenience. The Labour Ministry is about to change the Provident Fund deduction amount for employees which will give a boost to employee’s retirement benefits. More about this can be found in this article.
EPFO 3.0
Reports say the Government is planning to bring EPFO 3.0. This will provide employees with several benefits. As per CNBC Awaaz, the recent PAN 2.0 degradation and EPFO 3.0 are linked to each other. Once implementation completes employees will be able to withdraw PF money from ATM. It might be in work by May to June 2025. This will be a great facility in times of emergency.
Rise in EPFO Contributions
As per Employee Pension Scheme 1995 (EPS-95) 12 percent of the Employee’s basic salary is taken for PF. The employer also pays the same as the company’s contribution. 8.33 percent of this money goes to EPS-95 and the rest 3.67 percent goes to EPF. But this percentage can be revised and increased if the Labour Ministry permits. This will allow employees to receive a higher pension.
Impact of Future Pension
The amount which is deposited to EPS-95 makes up the pension, So, if more contributions can be made it will affect the future pension. The process is currently under process to get a permit from the Labour Ministry.
Some media reports claim the 12 Percent Cap will remain. But for convenience, more features can be offered to salaried employees. Some also suggest employees might choose to donate according to their savings. This will allow employees to exceed the set limit while depositing money in EPFO accounts.
