Bharatiya Mazdoor Sangh seeks doubling of EPF wage ceiling as wages rise

New Delhi: The Bharatiya Mazdoor Sangh (BMS), an affiliate of the RSS, demanded that the wage ceiling for mandatory Employees' Provident Fund coverage be doubled, arguing that the existing threshold failed to keep pace with rising wages and changing employment conditions.

The trade union also sought an increase in the eligibility ceilings for Employees' State Insurance (ESI) and statutory bonus.

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"The issue has been pursued through both dialogue and mass mobilisation," BMS in charge of finance sector Girish Arya told ET. "On August 17, we organised a nationwide agitation on various labour issues and have submitted a memorandum to the Prime Minister."

The BMS said it has received assurances that the issue would be considered, but a concrete policy decision was still awaited.

The demand comes as minimum wages have been revised across states and the government steps up efforts to formalise employment.

When a worker crosses the wage limits for EPF and ESI, the person loses the coverage but still requires the benefits considering the rising cost, argues the BMS.

For instance, the ESI benefit available till the person was getting up to ₹21,000 a month suddenly stops if the salary increases to ₹22,000, even though there is no major change in the income level, B Surendran, organising secretary of the BMS, told ET. "That's why we are demanding that the level for ESI coverage should be doubled to ₹42,000 per month of salary," he said. "State governments are doing it at the state level in several cases. But a central government policy is needed to protect the social security of the worker at a time when his financial needs are growing."

The union said the existing EPF ceiling was fixed more than a decade ago when wages and living costs were substantially lower. Since then, state governments have progressively revised minimum wages to reflect changing economic conditions and the rising cost of living.