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Govt may raise EPF wage ceiling to expand social security coverage
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News - The Siasat Daily
The government is likely to increase the ceiling of the Employees’ Provident Fund (EPF) framework from Rs 15,000 to Rs 25,000 per month.
Once cleared, the revised wage ceiling could come into effect from April 1.
Why wage limit is being revisedCurrently, EPF contributions are mandatory only for employees earning up to Rs 15,000 per month.
As it was not update for the past over 11 years, a large segment of the workforce now falls outside compulsory provident fund coverage.
With a higher wage ceiling, companies will face increased payroll expenses.