New Delhi [India], September 16 (ANI): Union Labour and Employment Minister Mansukh Mandaviya on Wednesday said the Cabinet, under the leadership of Prime Minister Narendra Modi, has taken a decision to expand the coverage of the Employees' Provident Fund Organisation (EPFO), providing enhanced social security benefits to employees earning up to Rs 25,000 per month.
Speaking to ANI, Mandaviya said the decision will bring lakhs of additional employees under the EPFO framework and provide them pension security, interest benefits and insurance coverage.
"Tomorrow is Vishwakarma Jayanti; on the eve of this occasion, the Cabinet under the leadership of PM Modi has taken a significant decision, providing crores of EPFO beneficiaries across the country an opportunity to enhance their social security. Generally, EPFO provisions apply to any establishment with more than 20 employees and the wage ceiling under EPFO was ₹15,000. This meant that on wages up to ₹15,000, there was a contribution of 12% from the employer, 12% from the employee, and 1.16% from the Government of India," he said.
"This will extend the benefits of social security to countless new employees who currently fall outside the EPFO's coverage. We estimate that between 50 lakh and 1 crore new beneficiaries will gain from this," he added.
He added that EPFO beneficiaries receive pension security, interest benefits on savings and death insurance coverage.
"This provided EPFO beneficiaries with pension security, an interest benefit of 8.25% on their savings, and death insurance coverage. In cases where an employee's salary exceeded ₹15,000, savings were possible only through voluntary contributions. But today, thanks to Modi ji's decision, anyone earning a salary of up to ₹25,000 will also come under the ambit of the EPFO. Contributions will be made on their behalf by the employer, the employee, and the Government of India; Based on this, they will receive social security. But today, thanks to Modi ji's decision, anyone earning a salary of up to ₹25,000, such employees will also come under the ambit of the EPFO. Contributions will be made on their behalf by the employer, the employee, and the Government of India; Based on this, they will receive social security," Mandaviya said.
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved raising the wage ceiling for mandatory coverage under the EPFO to Rs 25,000 per month from Rs 15,000. (ANI)
"50 lakh to 1 crore new beneficiaries to gain": Mansukh Mandaviya on EPFO expansion with pension, interest, insurance benefits
