The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the proposal of the Ministry of Labour & Employment to enhance the wage ceiling for mandatory coverage under the Employees' Provident Fund Organisation (EPFO) from Rs. 15,000 to Rs. 25,000 per month. The decision is expected to bring a larger section of workers within the statutory social security framework.

The wage ceiling, which was last revised to Rs. 15,000 in September 2014, has now been enhanced to Rs. 25,000 to align EPFO coverage with rising wages and the expansion of formal employment. Employees joining employment at wages between Rs. 15,000 and Rs. 25,000, who are presently outside mandatory EPFO coverage, will be brought within the statutory framework, subject to applicable provisions.

The enhanced coverage will provide eligible workers access to provident fund savings, pension protection under the Employees' Pension Scheme (EPS) and insurance protection under the Employees' Deposit Linked Insurance Scheme (EDLI).

The decision assumes significance for Assam, where wage levels and formal employment have continued to expand. The enhanced ceiling will enable a larger segment of the State's formal workforce to access statutory social security benefits.

According to the latest data of EPFO, Regional Office, Guwahati, around 3,21,137 contributing members are covered across approximately 6,900 contributing establishments. The revised wage ceiling is expected to further widen the social security coverage among eligible employees in Assam.

The measure is also expected to support formalisation of employment and strengthen long-term retirement security for workers by expanding access to EPF, EPS and EDLI benefits.

The annual Government outgo is estimated at approximately Rs. 11,339 crore, against the existing annual budgetary support of about Rs. 10,250 crore, while the estimated expenditure over five years is approximately Rs. 56,696 crore.

 

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PG/ SM

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