Wage ceiling for EPF scheme raised

By Our Special Correspondent

NEW DELHI, MAY 25. The Government has raised the wage ceiling for coverage under the Employees Provident Fund scheme from Rs. 5,000 to Rs. 6,500 a month.

A similar amendment has also been made in the Employees Pension Scheme and the Employees Deposit-linked Insurance Scheme to enlarge the scope of coverage.

Further, the Government has decided to make its contribution of 1.16 per cent up to the actual wage of Rs. 6,500 a month towards Employees Pension Scheme.

The revised wage ceiling in respect of all the three schemes would come into effect from June 1. The EPF scheme covers 3.26 lakh establishments with 24.53 million subscribers.

Currently, the Employees Provident Funds and Miscellaneous Provisions Act is applicable to 177 industries/classes of establishments employing 20 or more workers. In 172 categories of establishments, the rate of contribution to provident fund by employees and employers is 12 per cent.

However, in the case of five industries - brick, beedi, jute, coir and guargum - the minimum rate of contribution is only 10 per cent. The employers's contribution of 8.33 per cent is credited into the employee's pension fund while the Government contributes 1.66 per cent.

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