If you find yourself working in a sector that is somewhat organized, then this piece of news can easily bring a smile on your face. Because most of the schemes and facilities are meant for government employees only. But now the governments have started seeing the problem of pain in the private employees also. It is being shared that the government has made arrangements to raise the basic salary in EPFO from Rs 15,000 to Rs 21,000.
As a result, it will be of benefit to crores of private sector employees in the Country. Which means, even they shall get to cash more pension on a monthly basis. Its proposal has already been tabled in the Finance Ministry. This development is expected to take place this month, as the sources have suggested. However, let us counter check that no such announcement has been made yet of any kind. But if something is to be said about the news reports, it is that such an announcement will be made this month…
Basic salary will be Rs 21,000
Actually, governments are forever coming up with new schemes for the good of their staff. However, there is very little to motive the private employees as a scheme has never been started for them. Also, there is no arrangement for dearness allowance for them. Companies make increments whenever they want. For example, many a times, due to the prevailing economic state, private employees do not have a choice and have to work despite being substantially underpaid.
But the central government governed by Prime Minister Modi has been talking about raising basic salaries for private sector out-of many employed individuals. Rumor has it that the government is now planning to raise the amount to 21 thousand rupees. This will mean herculean jump in salary concerning the employees, if this comes into effect. Furthermore, recently the government has brought one more good news to the employees by introducing the Unified Pension Scheme.
This month’s announcement is much anticipated
As per various sources of information, the Ministry of Finance in the country intends to review upwards the existing basic salary structures. Furthermore, it has been indicated that the Ministry of Labor has suggested revising the current salary cap of Rs. 15, 000 to Rs. 21,000. If the salary cap is indeed raised, the employees working in the private sector are likely to stand to gain the most out of it.
The information availed states that the salary cap for EPS for the past nine years has been pegged at Rs fifteen thousand as effective on the 1st of September 2014. The ministry, therefore, might be in a position to arrive at a conclusion on this matter in due course. So far, however, it remains unclear as to when this announcement will be released to the public.
The contribution of the employee provident fund will increase
As per the proposal, the salary limit is expected to be increased from Rs 15,000 to Rs 21,000. This decision will result into increased contribution of the pension and also will increase the EPF contribution of the employees working in the private sector.
If it is accepted and passed by the government, the pension amount will be higher than the normal one. Due to which the employees will be effectively compensated post retirement. In addition to this, with the increase in the salary limit, the number of such employees will also increase.
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