AITUC calls for periodic revision of wage ceiling under EPFO

The All India Trade Union Congress (AITUC) AITUC has called for a regular and automatic mechanism for periodic revision of the wage ceiling under the Employees’ Provident Fund Organisation while demanding the wage ceiling to be fixed at Rs 30,000 per month to keep pace with increase in workers’ earnings.

The union cabinet on Wednesday approved the hike in the wage ceiling under EPFO to Rs 25,000 per month from the existing Rs 15,000, after 12 years of the last revision in 2014.

“The wage ceiling of Rs 25,000 is not an adequate ceiling. Any social security must keep pace with the workers’ earnings and must evolve in consonance with the minimum wages, actual wages, inflation and cost of living,” it said in a statement issued on Thursday, demanding that the ceiling may be raised to Rs 30,000 in order to include deserving sections of employees.


Expressing concerns on the anticipated dip in take home salary for workers, AITUC said the benefit of expansion of social security should not be at the cost of reduced monthly pay packet.

“The employer’s statutory EPFO contribution must be paid over and above the employee’s cost-to-company (CTC) and should not be deducted from or adjusted against the employee’s agreed and existing wages,” it added.

AITUC also said the government should ensure effective enforcement of employers’ statutory contributions so that workers get benefits of provident fund, pension and insurance protection under EPFO.