EPFO- Salary Limit and Pension Update, Government Preparing Big Gift for Employees

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EPFO: The Employees’ Provident Fund Organization (EPFO) and the Employees’ State Insurance Corporation (ESIC) are set to get a major upgrade. The central government is gearing up to make some key decisions, including an increase in the salary cap. Union Labor Minister Mansukh Mandaviya has hinted at this. He mentioned that the Ministry of Labor and Employment will soon make a call on raising the salary limit for EPFO and ESIC, establishing minimum wages, and boosting the minimum pension under the Employees’ Pension Scheme, 1995 (EPS).

Mandaviya noted that these topics were discussed in recent meetings with the central government, and decisions will be made shortly for the benefit of workers. Right now, the EPFO salary cap is Rs 15,000 a month, while the ESIC cap is Rs 21,000. The minimum pension for the EPS stands at Rs 1,000 a month. If the government raises these limits, a majority of employed individuals will be included.

What did the Supreme Court say in January?

Last January, the Supreme Court instructed the central government to make a decision within four months regarding the revision of the salary limit in the Employees’ Provident Fund (EPF) scheme. This limit has not changed in the last 11 years. A bench of Justices J.K. Maheshwari and A.S. Chandurkar issued this directive following a petition from social activist Naveen Prakash Nautiyal.

What was the argument given in the petition?

The lawyers for the petitioner, Pranav Sachdeva and Neha Rathi, argued that even though the minimum wage surpasses this limit in many regions of the country, no adjustments have been made to the EPF salary cap. This is leaving a significant number of employees without social security and provident fund benefits. The petition contended that revisions to the wage ceiling over the last 70 years have been inconsistent, sometimes happening after a gap of 13-14 years. Throughout this time, there has been no connection maintained with economic indicators like inflation, minimum wages, or per capita income.

About the Author

Sweta Mitra

Working in the media for last 7 years. The journey started in the year 2018. For the past few years, my working experience has been in Bengali media. Currently working at Timesbull.com. Here I write like Business, National, and Utility News. My favorite hobbies are listening to music, traveling, food,...

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SwetaMitra@timesbull.com Author at TimesBull TimesBull
Working in the media for last 7 years. The journey started in the year 2018. For the past few years, my working experience has been in Bengali media. Currently working at Timesbull.com. Here I write like Business, National, and Utility News. My favorite hobbies are listening to music, traveling, food, and books. For feedback - timesbull@gmail.com
Sweta Mitra - Author at TimesBull
About the Author

Sweta Mitra

Sweta Mitra - Author at TimesBull

Working in the media for last 7 years. The journey started in the year 2018. For the past few years, my working experience has been in Bengali media. Currently working at Timesbull.com. Here I write like Business, National, and Utility News. My favorite hobbies are listening to music, traveling, food,...

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