Govt considering proposal to hike EPFO wage ceiling to Rs 25000 per month

New Delhi, Dec 6 (KNN) The Employees' Provident Fund Organisation (EPFO) has proposed to hike wage ceiling for coverage under social security schemes run by the retirement fund body EPFO to Rs 25,000 per month from the existing Rs 15,000, Labour Minister Bandaru Dattatreya told Parliament.

The increase in wage ceiling for coverage under EPFO schemes to Rs 25,000 could add 50 lakh additional formal sector workers to around four crore contributing subscribers.

"A proposal for increase in the wage ceiling from Rs 15,000 per month to Rs 25,000 per month for coverage under the Employees' Provident Funds & Miscellaneous Provisions Act, 1952 has been submitted by the Employees' Provident Fund Organisation (EPFO). No decision in this regard has been taken," Labour Minister Bandaru Dattatreya said in a written reply to Lok Sabha.

More than two years ago, EPFO had increased the threshold to Rs 15,000 per month from Rs 6,500 on September 1, 2014 in view of price rise and pay revisions in the formal sector.