EPFO likely to raise wage ceiling to Rs 25,000 for pension coverage
The retirement fund body Employees' Provident Fund Organisation (EPFO) is planning to increase the wage ceiling for employees under its social security schemes to Rs 25,000 per month. Currently, the ceiling is pegged at Rs 15,000 a month, a media report said.
This decision can bring in nearly one crore formal sector more workers into the social security net of EPFO in addition to its existing base of 8.5 crore, as reported by The Times of India.
As per the report, the issue will be discussed in the next board meeting of EPFO which is scheduled for at the end of the month.
Presently, the employees who are earning up to Rs 25,000 a month have to mandatorily contribute 12% of their basic salary to EPFO and social scheme security.
On September 1, 2014, EPFO had raised the wage ceiling to Rs 15,000 per month from Rs 6500. However, the Union Cabinet has made it optional for employees earning less than Rs 15,000 per month to contribute towards EPFO schemes.