We wish to inform you that the Union Cabinet has approved the proposal to enhance the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from the existing ₹15,000 per month to ₹25,000 per month. The Government has indicated that this change is expected to bring more than 51 lakh additional employees within the ambit of mandatory EPFO coverage.
EPFO Wage seeling 25000.pdf
Accordingly, employees joining an establishment with wages falling between ₹15,000 and ₹25,000 per month, who may presently remain outside mandatory EPF coverage subject to the applicable provisions, are expected to come within the statutory coverage framework once the revised ceiling is implemented.
However, the Government communication specifically states that the Ministry of Labour & Employment and EPFO will undertake the necessary statutory and administrative steps for implementation of the decision.
EPFO Wage seeling 25000.pdf
IMPORTANT – THE EFFECTIVE DATE OF IMPLEMENTATION OF THE REVISED EPFO WAGE CEILING OF ₹25,000 IS STILL AWAITED.
Therefore, the revised wage ceiling should not presently be treated as operational merely on the basis of Cabinet approval. The existing statutory position should continue to be followed until the Government/EPFO issues the necessary notification, amendment, circular or implementation instructions specifying the effective date and applicable procedure.
We are closely monitoring the developments and shall update you immediately upon issuance of the formal notification/effective date so that necessary changes can be made in payroll, PF coverage and contribution processes.