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Wage ceiling for employees' PF increased

The government has increased the wage ceiling for coverage under the Employees Provident Fund Scheme from Rs 5,000 to Rs 6,500 per month.

A similar amendment has been made in the Employees Pension Scheme and Employees Deposit linked Insurance Scheme, a government release said on Friday.

The government has also decided to make its contribution of 1.16 per cent upto the actual wage of Rs 6500 per month towards Employees Pension Scheme.

The new ceiling comes into effect from June 1, 2001.

The EPF scheme covers 326,000 establishments with 24.53 million subscribers. The Employee Provident Funds and Miscellaneous Provisions Act is currently applicable to 177 industries/classes of establishments employing 20 or more workers.

In 172 categories of establishments the minimum rate of contribution to the provident fund by employees and employers is 12 per cent. But in case of five industries viz brick, beedi, jute, coir and guargum, the minimum rate of contribution is only 10 per cent.

8.33 per cent of the employer's contribution is credited into the employee's pension fund while the government contributes 1.66 per cent, the release added.

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