Centre plans to review upper wage limit for PF contribution

Union Labour Minister Mansukh Mandaviya discusses plans to increase EPFO contributions, improve pension schemes, and streamline benefits for workers.

Union Labour Minister Mansukh Mandaviya on Tuesday (September 17, 2024) said the Centre was trying to remove the ceiling for contributions towards the Employees’ Provident Fund Organisation (EPFO) and the Employees’ Pension Scheme (EPS) run by the EPFO. He said 92% of the subscribers paid a consolidated amount and the government was thinking to ease the upper limit so that they could invest more money in the EPFO. Mr. Mandaviya was talking to reporters about the decisions taken by his Ministry in the first 100 days of the third Narendra Modi government.

At present, the contributions are payable on the maximum wage ceiling of ₹15,000 and the pension contribution is at the rate of 8.33% of the maximum wage ceiling. “We are trying to increase this limit of ₹15,000,” the Minister said, adding that a suggestion on this had already reached his table. Mr. Mandaviya said consultations were going on in the Ministry on increasing the minimum pension under the EPS. Asked about the delay in distributing the higher pension to those who applied after a Supreme Court verdict, he said the EPFO’s platform would be reviewed soon and mission 3.0 would be implemented to help the subscribers.

He said the Ministry would move a Cabinet note on the employment-linked incentive (ELI) scheme announced in the Union Budget. “The Ministry is finalising a Cabinet note on the ELI scheme and it will be soon placed before the Cabinet for approval,” Mr. Mandaviya said. Details of the internship scheme were being worked out with the Corporate Affairs Ministry.

The Minister said the eShram portal completed the registration of over 30 crore unorganised workers in a short span of three years and more portals would be linked with it so that the workers could search for jobs and look for social security schemes for them using the eShram portal. “The portal will help in identifying registrants who have not yet received the benefits of various schemes so that such workers can be provided schemes’ benefit in a targeted manner based on their eligibility,” Mr. Mandaviya said.

He said the EPFO had increased the limit for auto claim settlement of partial withdrawals from ₹50,000 to ₹1,00,000. “The facility has been extended for housing, education and marriage in addition to illness. Partial withdrawals, which constitute nearly 60% of the total claims, have reduced significantly from 10 days to within 3-4 days,” he added.