A high-level committee has proposed the increase the wage ceiling under the Employees’ Provident Fund Organization (EPFO).
The proposed increase to Rs 21,000 per month from the existing Rs 15,000. The government may increase the threshold on the salary of employees.
The last EPFO wage ceiling revision was made in 2014. The wage revision was hiked to Rs 15,000 monthly from Rs 6,500 per month. The scheme currently covers only those organizations that have over 20 workers.
The proposed increase of the salary limit to Rs 21,000 per month has been endorsed by a committee. The committee has said that the government may implement the increase at a later date after discussion and thinking about this in detail.
A senior government official had said, In April the ad-hoc committee on EPFO coverage had agreed to enhance (waged under) EPF Act to align with ESI establishment.
The official further added that the committee has put forth that the new ceiling be implemented later, not immediately.
An expert committee will be formed shortly to revise the wage limit. The threshold is subject to revision of inflation and reviewed periodically for coverage under EPFO.