Salary threshold may be hiked to Rs 25,000 for mandatory PF coverage

New Delhi: Retirement fund body EPFO is likely to approve a proposal to hike wage ceiling for coverage under its social security schemes to Rs 25,000 per month from the existing Rs 15,000, as per media reports.

The move can bring in 50 lakh more formal sector workers into the social security net of the Employees' Provident Fund Organisation (EPFO) in addition to its existing subscriber base of around 4 crore organised sector workers.

The EPFO and ESIC run social security schemes for formal sector workers and are under administrative control of the Labour Ministry.

EPFO had increased the wage ceiling 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.

The Union Cabinet made it optional for employees earning less than Rs 15,000 per month to contribute towards EPFO schemes.

At present, employees are required to contribute 12 percent of their basic wages towards social security schemes run by the EPFO.

With PTI Inputs