Chandigarh. The Central Government’s recent decision on the Employees’ Provident Fund (EPF) is set to affect both employees and the industrial sector in Punjab. The government has raised the mandatory wage ceiling for EPF coverage from ₹15,000 to ₹25,000 per month. The move could bring around two lakh additional employees in Punjab under the social security net.
Under the revised system, EPF coverage will be extended to employees earning up to ₹25,000 per month. Along with provident fund benefits, employees will also be eligible for benefits related to pension and insurance. Nationwide, the change is estimated to bring around 51 lakh additional employees under the EPFO’s ambit.
However, the decision is also expected to have an impact on industrial units. Since EPF contributions are made by both employees and employers, companies may have to make higher contributions for eligible workers following the increase in the wage ceiling. This could put additional pressure on industries’ labour costs.
For employees, the impact will not be limited to increased long-term savings. Those who were previously outside mandatory EPF coverage because of the wage ceiling may now see a higher amount deducted from their salaries toward PF. In some cases, this could reduce their monthly take-home pay while increasing their retirement savings.
The revision of the EPF wage ceiling comes after a long gap. According to the Central Government, the move is aimed at expanding social security coverage in line with changing wage structures. The government is also expected to bear an additional financial burden following the revision.
