Union Cabinet raises India's EPFO salary cap to ₹25,000 monthly
Business
Big update for salaried folks: India's Union Cabinet just raised the salary cap for mandatory EPFO coverage from ₹15,000 to ₹25,000 per month.
This change is set to benefit about 5.1 million employees across the country, and the government will be spending around ₹113.39 billion on it.
Union Minister Ashwini Vaishnaw shared the news today.
Unskilled wage rises made cap outdated
The hike comes as minimum wages for unskilled jobs have gone up in many states, making the old cap outdated.
Vaishnaw said this move will help more workers and employers get social security benefits.
The wage ceiling hadn't changed from 2004 to 2014 before it was last revised, so this update is a big step toward keeping up with rising incomes and supporting formal employment.