Why is it important to review the upper wage limit for PF contribution
Discussing the rationale behind revisiting the wage limit for PF contributions
- Reflects inflation: Updating the wage limit ensures that the contribution is in line with the current cost of living.
- Equity in contributions: Increasing the upper wage limit can lead to more equitable contributions among employees, regardless of their income level.
- Enhances retirement savings: A higher wage limit allows higher-earning employees to save more for retirement through increased PF contributions.
- Encourages compliance: Regular revisions in the wage limit can help promote compliance among employers, ensuring proper contribution on behalf of their employees.
- Aligns with economic growth: Adapting the wage limit to economic growth can help support a fair and sustainable social security system.
Answered
7 months ago