EPFO Wage Ceiling Raised After 12 Years: Who Gains From the Rs 25,000 Limit?
Mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from Rs 15,000 to Rs 25,000 per month.
By Sakshi
New Delhi, September 16: The Union Cabinet on Wednesday approved a proposal to raise the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from Rs 15,000 to Rs 25,000 per month, marking the first revision in 12 years.
Information and Broadcasting Minister Ashwini Vaishnaw said at a Cabinet briefing that the move is expected to bring more than 51 lakh additional employees under mandatory EPFO coverage, widening access to social security benefits.
12-Year Gap in Wage Ceiling Revision
The EPFO wage ceiling was last raised to Rs 15,000 in September 2014, after remaining unchanged at Rs 6,500 from 2004 to 2014.
According to the government, the latest revision takes into account sustained wage growth, rising incomes and the continued expansion of formal employment over the intervening years.
The government’s annual expenditure under the revised ceiling is estimated at about Rs 11,339 crore, compared with existing annual budgetary support of about Rs 10,250 crore.
The estimated expenditure over five years is approximately Rs 56,696 crore.
