Union Cabinet approves enhancement of EPFO Wage Ceiling from Rs 15000 to Rs 25000

The Union Cabinet has approved the proposal of the Ministry of Labour & Employment to enhance the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (“EPFO”) from Rs.15,000 to Rs.25,000 per month.

As per the existing provisions, a fresh employee joining employment at a wage above Rs.15,000 per month is not automatically covered under the EPF framework and may remain outside mandatory provident fund, pension, and associated insurance protection. Raising the ceiling to Rs.25,000 will bring a substantial segment of employees in the Rs.15,000– Rs.25,000 wage band within the statutory social security framework.

Source: Press Information Bureau