New Delhi: Retirement fund body EPFO has asked its field offices to be prepared for implementation of the new government's decision to raise wage ceiling for social security schemes to Rs 15,000, which is expected to bring 50 lakh more workers under the coverage.
The Employees' Provident Fund Organisation (EPFO) has asked its field staff to arrange meeting with companies to apprise them about the intent of the government's decision to raise wage ceiling and assist them in implementation, according to an office order for the field staff.
In the budget speech, Finance Minister Arun Jaitley had announced that the wage ceiling for coverage of workers in organised sector under social security schemes run by EPFO would be raised to Rs 15,000 per month from Rs 6,500.
At present, workers whose basic wage at the time of joining is up to Rs 6,500 per month, including basic pay and dearness allowance, can be subscribers of the EPFO schemes.
According to the EPFO's estimates, the hike in wage ceiling to Rs 15,000 per month is expected to bring 50 lakh more workers under the ambit of social security schemes run by it. At present, there are over 5 crore contributing subscribers.
"The enforcement officer may be directed to visit the establishments to check the total number of employees drawing salary beyond Rs 6,500 and up to Rs 15,000 and not enrolled as members," the office order stated.
However the notification for enhancing wage ceiling is yet to be issued by the government. Thus the wage ceiling is Rs 6,500 per month, at present.
The EPFO has asked zonal offices to direct enforcement offices to visit establishments having large number of workers particularly the building and construction industries, placement agencies, etc.
As per the office order, the officers are also supposed to meet the representatives of the workers' union to apprise them about the raising of wage ceiling.
The government has made an initial provision of Rs 250 for current financial year for enhancing wage ceiling in the budget. However, as per the EPFO estimates, there would an additional funds requirement of around Rs 3,000 crore in 2014-15 for the purpose.
