Budget 2019: EPFO limit enhanced from Rs 2.5 lakh to Rs 6 lakh

In budget 2019, the Naendra Modi government has increased the Employee Provident Fund (EPF) from Rs 2.5 lakh to Rs 6 lakh in case of the demise of the employee

In a historic move to give relief to the employee's family welfare, the Naendra Modi government has increased the Employee Provident Fund (EPF) from Rs 2.5 lakh to Rs 6 lakh in case of the demise of the employee. The move is expected to give relief to both government and private sector employees getting the benefits of EPF. "To ensure safety to the family of a salaried person, if he or she dies prematurely, the government of India proposes to increase the EPF limit from Rs 2.5 lakh to Rs 6 lakh" said Piyush Goyal in parliament during his budget 2019 presentation.

Sanjay Agarwal, Partner, TASS Advisors, said that due to increase in the threshold limit of Esi scheme, industrial workers drawing a salary of upto Rs 21000 will now be eligible for health care at clinics and hospitals run by ESIC. 

The government also increased gratuity payment threshold limit raised to Rs 30 lakh from existing 10 lakh. Agarwal believes that this would ensure commitment to an employees to stay connected with a single employer for a longer term. "Considering the inflation and wage increase even in employees engaged in private sector the govt decided that the entitlement of gratuity should also be revised for employees covered under gratuity Act," he said.

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