EPFO DOUBLES WITHDRAWAL LIMIT TO RS 1 LAKH FOR EXIGENCIES, GOVT WORKING TO HIKE SALARY CEILING FOR PF

New Delhi: In a move that will help those looking to withdraw their provident fund to meet personal or other exigencies, the Employees’ Provident Fund Organisation (EPFO) has increased the withdrawal limit from the current Rs 50,000 to Rs 1 lakh.

“If you are an EPFO contributor and if there is some family emergency and if you want to withdraw the PF, the one time withdrawal limit has now been raised,” Union labour and employment minister Mansukh Mandaviya said at a press briefing Tuesday.

He also added that the government has relaxed the condition which will allow a person to withdraw in the first six months of their new job. “But now, PF contributors can withdraw within the first six months also… it is their money,” Mandaviya said, adding that the labour ministry has made these changes within the first 100 days of the new government’s term.

Work on to increase salary ceiling for PF

To expand the social security net of formal sector workers, Mandaviya said the ministry is currently working on the proposal to increase the income ceiling under the EPFO and the Employees’ State Insurance Corporation (ESIC) from the current Rs 15,000 per month and Rs 21,000, respectively.

At present, formal sector workers with a monthly salary of Rs 15,000 and working in companies with over 20 employees are eligible for EPFO. The wage ceiling for EPFO was last revised in 2014. For ESIC, the eligibility is a monthly salary of Rs 21,000. This limit was last revised in 2017.

An increase in EPFO salary ceiling, ministry officials said will lead to an increase in an employees’ provident fund contribution and increase his savings.

“I have already had a couple of meetings. We are working on it. Discussions have been going on for some time now as to how the limit can be enhanced,” Mandaviya said, adding that the idea is to expand the social security net for formal sector workers.

PF rules mandate that both employees’ and employer contribute 12 percent each to the EPF account.

Mandaviya also said that the Employment Linked Incentives (ELI) scheme will be made operational soon.

Announced in the budget with an eye to bolster employment generation, the scheme aims to create over two crore jobs in the country in a period of two years. It’s part of the Prime Minister’s package of five schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth over a 5-year period with a central outlay of Rs 2 lakh crore.

Three of the schemes are being piloted by the labour ministry. The first scheme proposes to incentivise first-time eligible employees of an establishment in the formal sector with reimbursement of one month wage up to Rs 15,000 in three instalments. The second scheme incentivises additional employment in the manufacturing sector with respect to their EPFO contribution in the first 4 years of their emplyment, while the third will incentivise employers up to Rs 3,000 per month for each additional employee for two years.

“We are firming up our proposal and will go to the cabinet shortly,” Mandaviya said.

(Edited by Tony Rai)

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2024-09-17T16:00:27Z dg43tfdfdgfd