Retirement fund body EPFO is likely to raise this month the wage ceiling for mandatory coverage under its social security schemes to Rs 25,000 a month, from
Rs 15,000 at present, bringing additional 1 crore formal sector workers in its net.
The proposal to increase the wage ceiling was listed for the Employees' Provident Fund Organisation's trustees' meet held last Thursday.
"The proposal was deferred due to the paucity of time and would be taken up at another meeting being planned for later this month," EPFO trustee D L Sachdev said.
Sachdev, who also All India Trade Union Secretary, said: "The back of the envelope calculations indicate that this move could bring in additional over one crore
formal sector workers under the net of EPFO scheme in view of recent hike in minimum wages by states like Delhi breaching Rs 15,000 mark."
According to the proposal tabled by the EPFO in its apex decision-making body the Central Board of Trustees' meet last Thursday, the hike in the wage ceiling would
mean an additional burden of about Rs 2,700 for the central government.
Content Source: Economic Times