On 10 July 2014, while presenting the Budget 2014, the Finance Minister of India proposed to increase the statutory salary ceiling from INR 6,500 (USD 108) to INR 15,000 (USD 250) per month under the Indian social security schemes (Provident Fund Scheme, Pension Scheme and Deposit Linked Insurance Scheme) and fix minimum monthly pension benefit at INR 1,000.
On 22 August 2014, these proposals have been notified and will come into force from 1 September 2014.
The enhanced statutory salary ceiling will increase the number of employees mandatorily required to be covered under the Indian social security schemes. Also, the minimum contributions required to be made by the employers and employees will increase due to increase in the statutory salary ceiling from INR 6,500 (USD 108) to INR 15,000 (USD 250) per month.
These changes are applicable for local employees and do not apply to International Workers.
No comments:
Post a Comment