Government mulls raising EPFO salary cap to ₹25,000 or ₹30,000
Business
The government is considering increasing the salary cap for Employees's Provident Fund Organisation (EPFO) from ₹15,000 a month to either ₹25,000 or ₹30,000.
This move could help more employees, especially skilled ones, get social security benefits that they currently miss out on due to the old limit.
Officials plan consultations amid ESIC talks
Officials are expected to consult stakeholders after taking the necessary approvals before making anything official, since a higher ceiling means more coverage but also extra costs for employers.
There's also talk of syncing EPFO's limit with the Employees's State Insurance Corporation (ESIC), which is set at ₹21,000.
The Supreme Court recently flagged the need to update the threshold in line with rising wages and inflation.