Right now, all workers drawing a monthly salary up to Rs15,000 are covered mandatorily under EPF and the Employees’ Pension Scheme social security benefits. Employees earning above this threshold join EPFO voluntarily. While EPFO plans to increase the wage threshold to Rs25,000, considering the financial implications for the Central government, the labour ministry is almost ready to moderate the hike in the wage threshold to Rs21,000, said the two government officials. Right now, all workers drawing a monthly salary up to Rs15,000 are covered mandatorily under EPF and the Employees’ Pension Scheme (EPS) social security benefits. The government contributes 1.16% to the pension kitty of every PF member whose salary is under the wage threshold.

Source: Mint April 05, 2017 04:52 UTC