Home Economic Times Panel backs elevating month-to-month EPFO wage ceiling to ₹21,000

Panel backs elevating month-to-month EPFO wage ceiling to ₹21,000

Panel backs elevating month-to-month EPFO wage ceiling to ₹21,000

Sharing is caring!

A high-level committee has backed a proposed enhance in wage ceiling beneath the Workers’ Provident Fund Organisation (EPFO) to ₹21,000 a month from the present ₹15,000.

The committee has, nevertheless, mentioned the federal government can implement the rise from a later date contemplating all inputs.

The proposal, as soon as carried out, will deliver an estimated 7.5 million extra staff inside the fold of the scheme, and in addition modify for the rise in wages because the final revision was performed in 2014.

“The ad-hoc committee on EPFO protection has agreed to boost (waged beneath) EPF Act to align with ESI institution,” a senior authorities official advised ET, including that it has prompt the implementation to be thought of at a later stage and never instantly.

graph

The suggestion, if accepted by the central board of the trustees of EPFO, will give a breather to the employers who’re reluctant to right away tackle any extra monetary burden.

Employers had of their consultations cited stress on their stability sheets because of the outbreak of the pandemic and sought extra time for implementing the proposed enhance.

It’ll even be a aid for the exchequer because the Centre at the moment pays about ₹6,750 crore yearly to the Workers’ Pension Scheme of the EPFO. The federal government contributes 1.16% of the entire fundamental wage of EPFO subscribers in the direction of the scheme.

Beneath the present guidelines, any firm with greater than 20 staff should register with the EPFO and the EPF scheme is obligatory for all staff incomes lower than ₹15,000.

The rise within the restrict to ₹21,000 will deliver extra staff beneath the retirement scheme. It’ll additionally align the ceiling with the opposite social safety scheme Workers’ State Insurance coverage Company (ESIC) the place the restrict is ₹21,000.

KE Raghunathan, an employer’s consultant on the central board of the trustees of the EPFO, mentioned there’s a consensus inside the EPFO that related norms must be adopted for offering social safety beneath each EPFO and ESIC.

“Employees shouldn’t lose out on the advantages of their social safety due to the distinction in norms beneath the 2 schemes,” he mentioned.

Labour unions are, nevertheless, apprehensive the choice might take a really very long time to implement.

“Numerous hurdles are in the way in which to implement this together with the required approval from the finance ministry,” a commerce union consultant mentioned requesting to not be recognized.

Leave a Reply

Your email address will not be published.

thirteen − 10 =

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.