The Supreme Court has instructed the Central government and EPFO to reevaluate the wage ceiling under the EPF Scheme within four months. This wage limit has not changed for over a decade, leading to many workers being excluded from EPFO benefits. The Court’s decision came during a PIL hearing emphasizing the need for a revision to ensure social security for organized sector employees.
The petitioner, Dr. Naveen Prakash Nautiyal, has been allowed to submit a detailed representation within two weeks. The existing wage ceiling of Rs 15,000 per month was criticized as arbitrary and not adjusted for inflation or wage growth. The plea highlighted the disparity between increasing minimum wages and the stagnant EPFO wage ceiling since 2014, resulting in many workers being left out of EPF coverage.
The PIL pointed out that the EPFO’s own Sub-Committee recommended raising the wage ceiling in 2022. Despite approval by the Central Board of Trustees, the government is yet to implement these suggestions. The petition stressed the importance of periodic revisions to prevent exclusion of workers and ensure the effectiveness of social security schemes for all employees in the organized sector.
