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 Indian government has raised the wage ceiling for EPFO (Employees' Provident Fund Organisation) subscribers to Rs 25,000 per month, up from the previous ceiling of Rs 15,000. This decision, announced by the Union Cabinet, comes after a 12-year hiatus. The increase will not only obligate employees to contribute to social security up to the Rs 25,000 limit, but also make more workers eligible for mandatory EPFO coverage.
This move is expected to add over 51 lakh employees to the EPFO's purview. The government anticipates an annual expenditure of Rs 11,339 crore, with a projected expenditure of Rs 56,696 crore over the next five years. The hike aims to broaden access to provident fund savings, pension protection, and insurance under the EPF, EPS, and EDLI schemes.
This decision follows the previous raise in 2014, when the ceiling was increased from Rs 6,500 to Rs 15,000.
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- EPFO wage ceiling to be hiked after 12 years indianexpress.com
