In a transfer that would broaden the social safety protection for formal sector staff, the federal government is contemplating a proposal to extend the wage threshold underneath the Staff’ Provident Fund Organisation and the Staff’ State Insurance coverage Company.
In accordance with sources, the federal government might enhance the wage ceiling underneath the 2 schemes to Rs 25,000 per 30 days. This is able to be a pointy rise from the present wage threshold – simply Rs 15,000 per 30 days for the EPFO and Rs 21,000 for the ESIC.
The wage threshold, which is the utmost pay as much as which staff employed in corporations with 20 or extra workers mandatorily qualify for the schemes, haven’t been revised for a number of years. For the EPFO, the brink was final revised in 2014 whereas for the ESIC, it was revised in 2017.
In accordance with sources, this has been a protracted standing demand of commerce unions and was additionally accepted by an inner committee of the EPFO’s Central Board of Trustees. Whereas a number of conferences of the CBT have additionally mentioned the problem, a choice has not been taken until now. The wage threshold for the ESIC must be accepted by its respective board.
Sources identified that the present minimal wage for the Central authorities is Rs 18,000 and the EPFO’s wage threshold is beneath that. Additional, with larger inflation and modifications in salaries, there’s a have to additional enhance the brink. A Rs 25,000 threshold would align the brink for each the schemes and be sure that extra staff may be included in these two social safety schemes.
Sources mentioned that dialogue on this subject have been happening and may very well be introduced as a part of the federal government’s efforts to enhance social safety protection and supply advantages to staff.
In a latest assembly with the brand new Labour Minister Mansukh Mandaviya, commerce union Bharatiya Mazdoor Sangh had additionally demanded doubling the ceiling of ESI and EPF eligibility. “The present ceilings had been too low and never in tune with the rise of revenue and costs,” it mentioned in a press release, including that such enhancement may even widen the protection of the schemes to a big part of staff.
