New Delhi: The Government's decision to enhance the wage ceiling for mandatory EPFO coverage to Rs 25,000 per month marks an important step towards strengthening social security for workers, Union Minister Mansukh Mandaviya said on Wednesday.

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Addressing the media, the Minister for Labour & Employment said the move will enable a larger number of employees to access provident fund savings, pension and insurance protection under the applicable EPFO schemes.

He highlighted that the wage ceiling remained unchanged since September 2014 despite considerable increases in wages, minimum wages and living costs.

At present, employees joining an establishment at wages above Rs 15,000 per month are not automatically covered under the mandatory EPF framework, subject to the applicable statutory provisions.

With the revised ceiling, employees drawing wages between Rs 15,000 and Rs 25,000 per month will become eligible for mandatory coverage, expanding the reach of formal social security, he said.

Mandaviya also stressed that the decision will further advance the government's commitment to providing social security to all workers under the Labour Codes and give impetus to the formalisation of employment.

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The Minister further said that the enhanced coverage will provide access, in accordance with the applicable statutory and scheme provisions, to the three major components administered by EPFO -Employees’ Provident Fund (EPF), Employees’ Pension Scheme (EPS) and Employees’ Deposit Linked Insurance Scheme (EDLI).

This will strengthen retirement savings, pension protection and insurance-linked social security for a larger section of workers.

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