The Union Cabinet has enhanced the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from 15 thousand rupees to 25 thousand rupees per month.
Addressing the media in New Delhi after the Cabinet meeting yesterday, Information and Broadcasting Minister Ashwini Vaishnaw said that the decision is expected to bring more than 51 lakh additional employees within the ambit of mandatory EPFO coverage, significantly widening social security protection for workers.
The annual Government outgo on this is estimated at about 11 thousand 339 crore rupees. Mr Vaishnaw said that the revised wage ceiling will come into effect from Vishwakarma Jayanti today.
The minister said the EPFO wage ceiling remained unchanged throughout the decade from 2004 to 2014 before being substantially enhanced to 15 thousand rupees in September 2014. Mr Vaishnaw highlighted that the present decision carries forward this approach by further raising the ceiling to 25 thousand rupees to reflect the sustained wage growth, rising incomes and a continued expansion of formal employment over the intervening years.
Our correspondent reports that the approval will expand access to provident fund savings, pension protection under the Employees’ Pension Scheme.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.