The government has raised the monthly wage ceiling for Employees’ Provident Fund Organisation (EPFO) coverage to Rs 25,000 from Rs 15,000, Union minister Ashwini Vaishnaw said at a Cabinet briefing on Wednesday.
The government will spend around Rs 11,339 crore every year as part of the move, which is aimed at widening social security coverage for employees.
Vaishnaw said the broader coverage would provide greater stability to employees and help employers retain their workforce.
The decision raises the wage threshold used for EPFO coverage by Rs 10,000 a month, expanding the pool of employees eligible for the benefit.
