New Delhi: Union Cabinet Wednesday approved a proposal to raise the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) to Rs 25,000 per month from Rs 15,000.
The wage ceiling revision is taking place after 12 years.
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, Information and Broadcasting Minister Ashwini Vaishnaw said at a press briefing.
The EPFO wage ceiling remained unchanged from 2004 to 2014 and was enhanced to Rs 15,000 in September 2014.
The present decision carries forward this approach by further raising the ceiling to Rs 25,000 to reflect sustained wage growth, rising incomes and continued expansion of formal employment over the intervening years, an official release said.
The annual government outgo is estimated at about Rs 11,339 crore against the existing annual budgetary support of about Rs 10,250 crore.
The estimated expenditure over five years is approximately Rs 56,696 crore.
PTI
