Government may hike salary threshold to Rs 21,000 for mandatory PF coverage

Government may hike salary threshold to Rs 21,000 for mandatory PF coverage

New Delhi: The Union government is likely to walk a middle path and increase the wage threshold from Rs 15,000 to Rs 21,000 for mandatory provident fund coverage instead of the Rs 25,000 proposed by the Employees' Provident Fund Organization (EPFO), said at least two government officials, on the condition of anonymity.

The Rs 21,000 cap will help bring in over six million more employees under the social security net without putting a strain on the government exchequer.

While EPFO plans to increase the wage threshold to Rs 25,000, considering the financial implications for the Central government, the labour ministry is almost ready to moderate the hike in the wage threshold to Rs 21,000, said the two government officials.