EPFO Seeking Permission from labour ministry to raise mandatory wage ceiling limit to Rs 25,000

The Employees’ Provident Fund Organisation has asked the labour ministry to raise the wage ceiling for mandatory EPF cover to Rs.25,000 a month from Rs. 15,000 now for organised-sector workers.

The Employees’ Provident Fund Organisation has asked the labour ministry to raise the wage ceiling for mandatory EPF cover to Rs.25,000 a month from Rs.15,000 now for organised-sector workers. The proposal, if implemented, would raise the number of active EPF subscribers by around 50 lakh to 4.5 crore.

A subscriber contributes 12% of her basic salary to the EPF and the employer makes a matching contribution. However, of the 12% employers’ contribution, 8.33% goes to the Employees’ Pension Scheme (EPS) and the remaining towards the PF account. The Centre also pays 1.16% to the EPS for an employee. Although the threshold exists for mandatory cover, employers and workers can opt for the scheme even if the salary levels are higher.

The EPFO’s wage threshold was last raised in November 2014 from Rs 6,500 a month.to Rs.15000.00 a month.