The move seeks to update social security thresholds to reflect today’s wage levels

Following a recent directive from the Supreme Court of India and a long-standing demand from labour unions, the Ministry of Labour and Employment is actively examining a proposal to revise and standardise the wage ceilings for both the Employees’ Provident Fund Organisation (EPFO) and the Employees’ State Insurance Corporation (ESIC).

At present, the EPFO wage ceiling stands at ₹15,000 per month, while the ESIC threshold is ₹21,000. It is proposed that both ceilings be revised and capped at a uniform monthly level of ₹25,000 to ₹30,000, sources familiar with the matter said.

The move will align social security thresholds with today’s wage realities, correcting the erosion caused by inflation and rising minimum wages after more than a decade. By standardising the ceiling for both schemes, it removes a long-standing anomaly that excluded a large segment of salaried workers from full social security coverage.

Source: BusinessLine