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Introduction
To enhance the employees’ attraction, more specifically attracting the youths, the Union Finance Ministry is planning to raise the limit of PF which currently is Rs 15,000 and has been constant since 2010. CNBC Awaaz News has intimated that the government may likely further augment the limit to Rs 25000. The proposal below is the work of the Ministry of Labour and Employment to address and boost financial protection for the employees in the country.The Provident Fund (PF) is one of the most significant social security measures in the nation, organized by the Employees’ Provident Fund Organisation (EPFO).
A Provident Fund is money accumulated and set aside for a retirement programme supported by the government of the Federal Republic of Nigeria and contributed to by workers and their employers mostly those on salary. It is aimed at providing money to employees after their working years and is considered to be one of the safest and most tax-efficient types of retirement benefits. This is a reserve by both the employer and the employee so that the employee has a sizeable amount saved before his/her retirement.
What is this Proposed PF Revision?
The benefit of such a revision, according to the proposal, was to extend the coverage of social security. The Centre last made changes to a condition that defines the contribution limit of EPF beyond which employers cannot make contributions in December 2013 and it increased the said limit to Rs 15,000 from Rs 6,500 from 1st of September, 2014. EPF is governed by the Employees Provident Fund and Miscellaneous Provisions Act 1952 (EPF Act) and Employees Provident Fund and Miscellaneous Provisions Scheme 1952 (EPF Scheme); both the employer and the employee contribute pegged at approximately 12 per cent of the employee’s salary towards the EPF account. The whole of the employer’s contribution is credited to the Provident Fund account, out of which 8. Employer’s 33 per cent is paid to the Employees’ Pension Scheme while 3 per cent is paid to the young ones. Concisely, 67 percent to the Provident Fund account.
Trade Unions’ Demands
Also in this regard, central trade unions have demanded the government create a government-sponsored social security fund in the upcoming budget to cover millions of unorganised, gig, platform and agricultural workers as provided in the Code on Social Security 2020.Amarjeet Kaur General Secretary of the All India Trade Union Congress said, “The Social Security fund for unorganised workers sponsored by the Union government will enable Workers to get defined universal social security schemes minimum pension and other medical and education benefits. ”The trade unions underlined the absence of a fund for organized and unorganized workers especially for agriculture labourers, to provide accommodation facilities and to introduce special schemes for rendering occupational health and safety to the hazardous workers including sweepers, rag pickers, waste recyclers, persons employed in salt pan and glass bangle makers etc. It was made after a Prime Ministerial meeting with the Union Finance Minister Smt Nirmala Sitharaman in June.Historical PF Wage Ceiling Increases Labor Laws, pp.175-179 This subtopic looks into historical PF wage ceiling increases under labour laws.To provide context, here’s a historical overview of the wage ceiling increases for the Provident Fund: To provide context, here’s a historical overview of the wage ceiling increases for the Provident Fund:
Limitation of list Maximum wage level (monthly)
150/01/53 to 151/06/58 300
1/6/1957 to 30/12/1962 Rs 500
For those born between 31 December 1962 to 10 December 1976, the fare will be Rs 1000.
11 December 1976 to 31 August 1985 Rs 1600
Rs 2500 has been provided for meeting the costs from 1 September 1985 to 31 October 1990.
An appointing authority should not post an appointee in a particular stream to another stream of lower remunerative position from the existing one: 1 November 1990 to 30 September 1994 Rs 3500
Specified Period : 01.10.1994 to 31.05.2011 Rs 5000
The emp. memo tỷ as per the emp. memo: URL exists from 1 June 2001 to 31 August 2014, and the emp. memo mại is Rs 6500.
Assistant Manager for IT at GESCO Power Limited 01 September 2014 to date And the remunerations paid are Rs: 15000
Conclusion
The proposal to raise the limit of the provident fund is welcomed as a positive measure towards the improvement of social security for the country’s employees with salaries. This coupled with the proposed creation of a social security fund for the unorganized employees shows that the government is now keen on ensuring that all classes of employees are financially secured.
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