Employee unions have long demanded that the basic salary limit for mandatory EPF contributions be raised from ₹15,000. This issue came up for discussion on the first day of Parliament’s winter session when Labor and Employment Minister Mansukh Mandaviya was asked whether the government planned to raise the EPF wage ceiling from ₹15,000 to ₹30,000. In response, Mandaviya said that extensive consultations with trade unions, industry organizations, and all stakeholders were necessary before taking such a decision.

what the government said

Mandaviya explained that increasing the EPF limit impacts the take-home salary of employees and also increases the hiring costs of employers, so any change cannot be decided without discussion. Currently, it is mandatory for employees with a basic salary of up to Rs 15,000 to contribute to EPF. For employees above this limit, especially those who joined after September 1, 2014, joining EPF is optional. He said that under the EPF Scheme, 1952, all employees earning up to Rs 15,000 are required to contribute to PF, and there is no separate minimum wage standard for this.

what is the detail

The government stated that the EPF wage ceiling was last revised in 2014, when it was raised from ₹6,500 to ₹15,000. If this limit is raised to ₹30,000, EPF contributions will become mandatory for employees earning ₹30,000 in the organized sector. This could provide a stronger future security for more employees. However, the government clarified that no final decision has been made on this issue and further action will be taken only after consultation.

The government also clarified its position regarding gig workers. Mandaviya stated that gig workers are not covered by the EPF Scheme, 1952, because their work is not based on a traditional employer-employee relationship. However, under the Social Security Code, 2020, separate social security provisions exist for gig workers and platform workers, including benefits such as life insurance, accident insurance, health care, maternity benefits, and old-age protection. A social security fund has also been established to ensure basic security for these workers.

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