IMPHAL/UKHRUL, SEP 23: The Employees’ Provident Fund (EPF) wage ceiling has been raised from Rs 15,000 to Rs 25,000, a move expected to bring more employees under the social security scheme, the EPFO Special State Office, Imphal said on Wednesday.
The revised ceiling will allow employees drawing basic pay and dearness allowance (DA) up to Rs 25,000 to become eligible for EPF coverage, subject to the applicable provisions, Regional Provident Fund Commissioner-II Majangbou Newmei said.
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Speaking at a press meet at the EPFO Special State Office at Keishampat Aheibam Leikai, Imphal, Newmei said the wage ceiling was enhanced through a Gazette notification issued on September 17.
He said the EPF scheme is defined under Section 15 of the Code on Social Security, 2020, while provisions concerning membership of the scheme are contained in Chapter III of the notification issued by the Ministry of Labour and Employment on June 29 this year.
The increase in the ceiling means employees who were earlier outside the EPF coverage due to the previous Rs 15,000 wage limit may now have an opportunity to join the scheme, Newmei said.
He added that EPF membership also provides access to the Employees’ Pension Scheme (EPS), while eligible members are covered under the Employees’ Deposit Linked Insurance (EDLI) scheme as per the applicable provisions.
According to Newmei, the higher wage ceiling will also increase the contribution base for employees and employers, as EPF contributions are linked to basic wages and DA.
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He urged employees working in the organised sector to make use of the social security benefits available under the EPF framework.
EPFO Enforcement Officer Chingangbam Chitrasen said employees in the organised sector who are not covered under other pension arrangements can avail themselves of social security benefits through the EPF, EPS and EDLI schemes.
He said an employee enrolled as an EPF member can avail the benefits of all three schemes, subject to the prescribed rules and eligibility conditions.
Chitrasen termed the enhancement of the wage ceiling as a significant expansion of the EPF coverage and said it would enable more employees to access institutional social security protection.
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