The Indian government may soon increase the wage ceiling to ₹21,000 and reduce the employee threshold to 10-15 for the Employees’ Provident Fund Organisation (EPFO) to expand social security benefits for workers. These measures, under review by the Ministry of Labour and Employment, aim to strengthen worker protections and widen EPFO coverage.

BulletsIn

• Government considers raising EPFO wage ceiling from ₹15,000 to ₹21,000.
• Plan to lower employee threshold for EPFO eligibility from 20 to 10-15 employees.
• Labour Ministry is discussing the proposal with industry stakeholders.
• Revised wage ceiling aligns with Employees’ State Insurance Corporation standards.
• Higher wage ceiling boosts provident fund and pension benefits for employees.
• Proposal part of the Social Security Code rollout, enhancing worker protections.
• Currently, both employee and employer contribute 12% each to EPF.
• Of employer’s 12%, 8.33% goes to Employee Pension Scheme, 3.67% to provident fund.
• Micro and small businesses are concerned about compliance and cost impacts.
• Government determined to advance proposal, ensuring broader social security for workforce.