EPFO wage ceiling raised to Rs 25000 per month; over 10 million formal sector workers to benefit
The enhanced wage ceiling, approved by the Cabinet on Wednesday, will put additional financial burden on employees and the government while the employees may see a dip in take home salary. As per government estimates, the average additional outgo for employers will be Rs 600 per worker per month under the enhanced wage ceiling, which comes into effect from Thursday. The annual government outgo is…
The Indian government has increased the wage ceiling under the Employees' Provident Fund Organisation (EPFO) to Rs 25,000 per month, effective immediately. This move is set to benefit over 10 million workers in the formal sector, who will now be automatically covered under the EPF framework. The labour and employment minister, Mansukh Mandaviya, announced the decision, stating that it will expand access to pension savings, pension protection, and insurance protection for workers.
The additional financial burden on employers and the government includes an estimated Rs 600 per worker per month for employers, leading to an annual government outgo of about Rs 11,339 crore over five years.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- EPFO wage ceiling raised to ₹25,000 from ₹15,000: Ashwini Vaishnaw livemint.com
- Cabinet raises EPFO wage ceiling to Rs 25,000 from Rs 15,000 economictimes.indiatimes.com