Employees Provident Fund Organization
The recent increase in minimum wage in Uttar Pradesh and Haryana has sparked a new debate. Experts say that due to this, a large number of workers may be out of the mandatory scope of the Employees Provident Fund Organization (EPFO), because the salary limit for PF is still fixed at Rs 15,000 per month.
Salary increased, but rules are old
In districts like Ghaziabad and Gautam Buddha Nagar of UP, the salary of semi-skilled and skilled laborers has reached above Rs 15,000 since April 1. At the same time, the minimum wage of unskilled laborers in Haryana has also become Rs 15,220. Under the current rules, it is mandatory for those earning up to Rs 15,000 to join EPFO, but it becomes an option for those earning more than this.
Same trend across the country
According to the report, the minimum wage for semi-skilled and skilled workers in most states and union territories is now between Rs 15,000 to Rs 20,000. In some categories in states like Delhi and Kerala, it has reached around Rs 22,000. In such a situation, a large number of employees may be left out of mandatory PF coverage.
Demand to increase ceiling intensifies
The central government is considering increasing the salary limit of EPFO to Rs 25,000, but the decision on this is stuck due to opposition from employers. Experts say that in view of the current situation, it has become necessary to increase this limit, so that even low-salaried employees can remain within the ambit of social security.
Big challenge in compliance too
Labor experts have also expressed concern that minimum wage rules are not being followed properly in many small institutions and contractors. In such a situation, the workers are facing a double blow, neither are they getting full salary nor facilities like PF.
What next?
If the salary limit of EPFO is not changed, then in the coming time more employees may be out of the scope of social security, which may affect their financial security.
