December, the last month of the year, has come to an end, and all have started preparing for the arrival of the new year 2025. This time the new year carries good fortune for the employees of the private sector. As per the sources, the government is planning to raise the basic pay limit under EPFO (Employees Provident Fund Organization) for private sector employees.
Will there be a big change in the pension limit?
Currently, the pension is calculated keeping a figure of ₹ 15,000, which is proposed to be increased to ₹ 21,000. There has been no change in this limit since 2014, but a proposal is now ready for the intended update, and its effect will be great on the pension amount received by employees every month.
What will be the effect?
If this change occurs, then: There would be a minor deduction in the employee’s monthly salary since a higher contribution will have to be made to EPFO. In the long term, they will benefit from the fact that pension may increase to the tune of up to ₹2,550 per month.
Long-standing demand
Long ago, this increase in the pension and salary limit has been demanded from the private sector employees. In that case, if the government does implement the change in Budget 2025, it would be great relief for lakhs of employees.
