The record
Written from the 1 report below. Nothing here is unsourced.
- The Finance Ministry has approved raising the salary cap for mandatory EPFO and EPS coverage from 15,000 to 25,000 rupees per month (basic pay plus DA).
- This means lakhs of organised-sector employees earning up to 25,000 rupees could become eligible for provident fund and pension benefits.
- The proposal, last revised in September 2014, will now be sent to the Union Cabinet and will apply to registered companies with 20 or more employees.
- The change will raise payroll costs for companies and increase the government's pension subsidy outlay, as it contributes 1.16 percent of basic pay to the pension fund.
What to watch next
- Approval of the proposal by the Union Cabinet
- Final notification and implementation date of the new salary cap
- Impact on company payroll costs and the government's pension subsidy budget
Coverage1
1 report
Indian-language1
All filed from India
Named India · Cabinet · Employees' Provident Fund Organisation · EPS · Finance Ministry · Ministry of Labour
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