EPFO wage ceiling raised from <span class='webrupee'>₹</span>15,000 to <span class='webrupee'>₹</span>25,000, 51 lakh more workers to benefit

EPFO wage ceiling raised from ₹15,000 to ₹25,000, 51 lakh more workers to benefit

The new increase takes into account sustained wage growth, rising incomes and the expansion of formal employment over the intervening years

The Union Cabinet on Wednesday approved raising the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from ₹15,000 to ₹25,000 a month, a move that will bring more than 5.1 million additional employees under the statutory social security system, according to a government release.

The revised ceiling will come into force from September 17. The number of workers covered could eventually be much higher. “It can go up to 10 million,” a senior labour ministry official said.

The move will cover employees earning between ₹15,000 and ₹25,000 a month. Under the existing system, a fresh employee joining a covered establishment at a wage above ₹15,000 is not automatically brought under mandatory EPFO coverage.

“Under the revised ceiling, employees earning ₹15,000 to ₹25,000 a month will come within the mandatory social security framework. They will get provident fund savings, pension and insurance protection,” the senior official said.