JAMMU: The Employees’ Provident Fund Organisation (EPFO) has raised the wage ceiling for mandatory coverage from ₹15,000 to ₹25,000 per month, a move expected to bring a larger section of employees within the statutory social security framework, including workers in Jammu, Samba and Kathua.
According to a press release issued by the EPFO Regional Office, Jammu, the Union Cabinet has approved the enhancement, which will extend mandatory EPFO coverage to employees earning between ₹15,000 and ₹25,000 a month who were previously outside automatic coverage.
The wage ceiling had remained unchanged between 2004 and 2014 before being raised to ₹15,000 in September 2014. The latest enhancement has been linked to sustained wage growth, rising incomes and the expansion of formal employment over the intervening years.
Employees covered under the EPF framework will have access to provident fund savings, pension benefits under the Employees’ Pension Scheme (EPS) and insurance protection through the Employees’ Deposit Linked Insurance Scheme (EDLI), subject to applicable provisions. The EPFO Regional Office Jammu currently has around 1.60 lakh contributing members across nearly 3,950 establishments.
The decision is aimed at widening social security coverage and supporting the formalisation of employment, worker retention and long-term retirement security, the release said. The expanded coverage is expected to particularly benefit employees in the districts of Jammu, Samba and Kathua.
The EPFO also highlighted the implementation of the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) to promote employment generation and formalisation. Under the scheme, Part A employees can receive benefits of up to ₹15,000, while Part B provides incentives of up to ₹3,000 per employee per month for four years in the manufacturing sector and two years in other sectors.
In the jurisdiction of the EPFO Regional Office Jammu, more than 2,450 establishments have registered under PMVBRY, along with over 19,500 new joinees under Part A and more than 29,500 re-joinees under Part B, according to the release.
The EPFO said the measures would further strengthen the social security framework and support the expansion of formal employment.
