PolityGS-IGS-III· 1 min read
EPFO Wage Ceiling Increased
Why in news?
The Union Cabinet approved raising the wage ceiling for mandatory Employees' Provident Fund Organisation (EPFO) coverage from ₹15,000 to ₹25,000 per month.
Key points
- Expected to bring over 51 lakh additional employees under EPFO coverage.
- Enhances access to provident fund savings, pension under EPS, and insurance under EDLI.
- Implementation date is September 17, coinciding with Vishwakarma Jayanti.
- Estimated annual government outgo to increase to ₹11,339 crore.
- Employers' and employees' contributions to EPS will also increase.
Background & context
EPFO is a statutory body under the Ministry of Labour and Employment, Government of India, that deals with provident fund, pension, and insurance to employees in the organized sector. The wage ceiling determines eligibility for mandatory social security benefits.
★ Prelims fact capsule
The previous wage ceiling for EPFO coverage was ₹15,000 per month.
✎ Mains relevance
GS Paper 1: Social Issues (Social Security, Welfare Schemes); GS Paper 3: Economy (Employment, Social Security).