EPFO: Trade union wants monthly EPF wage ceiling hiked to ₹30,000, says ₹25,000 ‘too little, too late’ — Here’s why
The All India Trade Union Congress (AITUC) wants the Centre to hike EPFO wage ceiling to ₹30,000 per month, stating that the new ₹25,000 per month ceiling is “too little, too late” for coverage under social security schemes, PTI reported.
In a statement last Thursday, the trade union demanded that monthly wage ceiling for coverage under EPFO be raised to ₹30,000 to include deserving sections of employees, the report added.
Here’s a look at the reasons for their demand
AITUC in its statement called the Cabinet decision to raise EPFO wage ceiling from ₹15,000 to ₹25,000, after a gap of 12 years, “a belated response to a long-pending demand of the trade unions”.
Govt hikes wage ceiling for EPF coverage
The Union Cabinet on Wednesday approved raising the wage ceiling eligibility for Employees Provident Fund (EPF) coverage by ₹10,000, from the ₹15,000 set in 2014, Union Information and Broadcasting Minister Ashwini Vaishnaw announced.
According to an official government release, the ceiling has been hiked to “reflect sustained wage growth, rising incomes and continued expansion of formal employment over the intervening years”. The move brings an additional 51 lakh employees under mandatory provident fund cover and widens social security cover for workers, it added.
Notably, the EPFO also administers pension under the Employees’ Pension Scheme (EPS) and insurance protection under the Employees’ Deposit Linked Insurance Scheme (EDLI).
