According to reports, the government is planning to hike the wage ceiling from Rs 15,000 to Rs 21,000.
Prime Minister Narendra Modi-led government at the Centre is planning to increase the monthly wage ceiling of mandatory Employees' Provident Fund (EPF) soon. According to reports, the government is planning to hike the wage ceiling from Rs 15,000 to Rs 21,000. Sources said that the talks to hike monthly wage ceiling of EPF cover has been going on for quite sometime now. Zee Hindustan reported that a meeting between Labour Ministry officials and the representatives of corporate sector was held to hold discussions over this matter few days ago.
1. BMS request from government
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It is learnt that Bharatiya Mazdoor Sangh (BMS) has requested the Centre not to deduct PF of those persons whose monthly salary is Rs 15,000.
2. Increase in earned leaves
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In January, BMS urged that the cap on earned leaves should be raised to 300 days from the 240 days proposed in the new rules of labour codes.
3. Two labour codes
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The BMS had made the demand during the meeting held by the Union Ministry of Labour and Employment on the draft rules on two labour codes — namely Social Security Code, and Occupational Safety Health and Working Conditions Code (OSH).
4. Wage limit of EPF
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Notably, the wage limit of mandatory EPF has remained unchanged since September 2014 when the government had decided Rs 15,000 ceiling from previous Rs 6,500.
5. EPFO suggestion
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Employees' Provident Fund Organisation (EPFO) had also proposed a wage limit up to Rs 25,000 per month.
6. How will it affect government
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If the new wage ceiling comes into effect, then it would inflate the government’s annual Employees Pension Scheme (EPS) outflow by 50% to Rs 3,000 crore.
