The Union Cabinet has approved an increase in the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from ₹15,000 to ₹25,000 per month. The decision is expected to bring more than 51 lakh additional employees across the country, including Bihar, within the mandatory EPFO coverage framework.
Under the revised EPFO wage ceiling, the mandatory coverage limit has been raised from ₹15,000 to ₹25,000 per month. The change will affect employees working in establishments covered by EPFO who become eligible under the revised limit.
The revised arrangement could extend coverage to employees who were outside the mandatory EPFO framework because their wages exceeded the existing ₹15,000 threshold. Eligibility will depend on the applicable provisions and the EPFO arrangements of the concerned establishment.
According to the Central Government, the increase in the wage ceiling could bring more than 51 lakh additional employees under mandatory EPFO coverage. The government estimates that the change will involve an additional annual expenditure of about ₹11,339 crore.
The mandatory EPFO wage ceiling was last increased to ₹15,000 in September 2014. The latest revision raises the ceiling to ₹25,000.
The social security framework associated with EPFO includes provident fund, pension and insurance provisions. Eligible employees may therefore receive coverage under the provident fund along with pension benefits under the Employees’ Pension Scheme and insurance protection under the Employees’ Deposit Linked Insurance Scheme, subject to the applicable scheme provisions.
After the revised arrangement takes effect, employees in Bihar can check their PF account, wage structure and the EPFO status of their employer to determine whether they fall within the revised ₹25,000 mandatory coverage ceiling.
The ₹25,000 figure is the wage ceiling for mandatory EPFO coverage and is not a decision to increase employees’ salaries. The change is intended to bring eligible employees within the social security framework.
