Reports Suggest Government May Increase Wage Ceiling Under EPFO to Rs 21,000 from Rs 15,000

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Government Considers Increasing EPFO Wage Ceiling to Rs 21,000: Reports


New Delhi: Reports in the Economic Times suggest that the government is contemplating raising the wage ceiling of the Employees' Provident Fund Organisation (EPFO) from Rs 15,000 to Rs 21,000. Quoting official sources, ET indicates that the government is exploring this move to enhance the social security net by expanding the coverage under EPFO. This proposal has garnered support from EPFO members, who have long advocated for an increase in the wage ceiling.

The last amendment to the salary cap was made in 2014 when the government raised the PF salary limit from Rs 6,500 to Rs 15,000. If implemented, the new limit would bring more individuals within the purview of EPFO but could also pose financial challenges for the government. The decision is currently pending government approval.

In a related development, EPFO introduced measures in June last year to streamline the process for applying for a higher pension under the Employees' Pension Scheme (EPS) for eligible employees. These measures aim to simplify the application process, particularly for individuals lacking joint requests or permission from their employers.

Outlined in a circular issued on June 14, 2023, the new guidelines detail the required documents and procedure for submitting applications for higher pension benefits. The process involves employer verification, digital conversion, scrutiny by supervisors and account officers, and communication of the final decision to the applicants.




These revised guidelines enable the calculation of pensions based on salaries exceeding the statutory limit of Rs 15,000 under the EPS of 1995. It is important to note that only EPF members as of September 1, 2014, are eligible to apply for higher pension benefits.

EPFO field offices are now equipped to accept applications for higher pensions under the EPF scheme.

Disclaimer: This article is a fictional rewrite based on provided information and should not be considered as official news. For accurate and up-to-date information, readers are advised to refer to credible sources and official announcements.

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