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By:

Sumit Ranjan Das

21 August 2024 at 4:08:59 pm

EPFO’s Big Wage-Band Reset

Twelve years is a long time for a wage ceiling to remain unchanged. The last revision came in September 2014, when the limit was raised from Rs.6,500 to Rs.15,000. Last week, the Union Cabinet approved another increase, taking the ceiling to Rs.25,000 a month with effect from 17 September 2026. The government’s estimate is that more than 51 lakh additional employees will come within mandatory EPFO coverage as a result of the change. For employers and payroll professionals, however, the...

EPFO’s Big Wage-Band Reset

Twelve years is a long time for a wage ceiling to remain unchanged. The last revision came in September 2014, when the limit was raised from Rs.6,500 to Rs.15,000. Last week, the Union Cabinet approved another increase, taking the ceiling to Rs.25,000 a month with effect from 17 September 2026. The government’s estimate is that more than 51 lakh additional employees will come within mandatory EPFO coverage as a result of the change. For employers and payroll professionals, however, the headline number is only the starting point. The more important questions are who will be covered, which wages will be taken into account and how the revised provisions will be implemented. Wage Ceiling The existing wage ceiling of Rs.15,000 a month is being raised by Rs.10,000, or 66.7 percent, to Rs.25,000. The change takes effect from 17 September 2026 and marks the first revision since September 2014. The government expects more than 51 lakh additional employees to be covered. Estimated expenditure is about Rs.56,696 crore over five years, while annual government outgo is expected to rise to approximately Rs.11,339 crore. The standard contribution remains 12 percent each from the employee and employer, subject to applicable provisions. The Cabinet said the decision will expand access to provident-fund savings, pension protection under the Employees’ Pension Scheme (EPS) and insurance protection under the Employees’ Deposit Linked Insurance Scheme (EDLI), in accordance with the applicable scheme provisions. The wage ceiling is not merely an administrative threshold. It determines the point at which mandatory EPF coverage applies under the existing framework. At present, a fresh employee joining employment at wages above Rs.15,000 a month is not automatically brought within mandatory EPF coverage and may remain outside mandatory provident-fund, pension and associated insurance protection, subject to applicable statutory provisions. The revised ceiling will bring a substantial section of employees earning between Rs.15,000 and Rs.25,000 within the mandatory coverage framework. The government has also quantified the fiscal impact. The estimated expenditure is about Rs.56,696 crore over five years, while annual government outgo is expected to rise to approximately Rs.11,339 crore, compared with existing annual budgetary support of about Rs.10,250 crore. The Labour Ministry has linked the revision to sustained wage growth, rising incomes and the continued expansion of formal employment since the previous revision in 2014. Payroll Illustration Consider an employee earning Rs.22,000 a month who becomes subject to mandatory coverage under the revised ceiling. At the standard 12 percent contribution rate, if the full eligible wage is used as the contribution base, the employee’s contribution would rise from Rs.1,800 to Rs.2,640 a month, while the employer’s contribution would similarly rise from Rs.1,800 to Rs.2,640. Total monthly contributions would therefore increase from Rs.3,600 to Rs.5,280 — a combined increase of Rs.1,680. However, this should not be treated simply as Rs.1,680 of additional employee savings. Contributions are allocated between EPF and EPS components as prescribed, with the EPF component accumulating in the employee’s account and the EPS component providing pension benefits subject to scheme conditions. The Rs.22,000 example is illustrative, not a universal payroll formula. The final treatment of wage components, existing employees in this band, EPS allocation and transitional matters will depend on the statutory notification and EPFO implementation instructions. For payroll professionals, the immediate task is to assess the operational impact. Key questions include the effective date for existing employees and new joiners, which wage components will count towards PF, whether the 10 percent concessional rate for notified establishments will continue, how the revised ceiling will interact with EPS pensionable wages, and what changes will be required in payroll systems. The Cabinet approval establishes the policy decision; the formal Gazette notification and EPFO instructions will determine how it is translated into payroll processes. The revised ceiling is the first increase since September 2014 and is expected to bring more than 51 lakh additional employees, particularly those in the Rs.15,000-Rs.25,000 wage band, under mandatory EPFO coverage. For them, the change can expand access to provident-fund savings, EPS pension and EDLI insurance, subject to scheme provisions. For employers, it means reviewing payroll costs, employee data, eligible wage components, contribution calculations and compliance systems. The government has described the move as part of efforts to extend statutory social security and strengthen formal employment. The policy has been announced. For payroll professionals, the next chapter is implementation. (The writer is a Cost and Management Accountant and founder of TaxoDas. Views personal

Alpha, Alia and the business of female stardom

Jul 19
4 min read

Mumbai: For all the progress Hindi cinema likes to claim, one uncomfortable truth keeps returning to the surface and that is, the industry still does not know how to build women into lasting theatrical phenomena. Alia Bhatt’s Alpha is only the latest reminder. The mixed reaction to it at the box-office and the negativity on social media has exposed something larger than BO arithmetic. It has reopened the old question of why female-led films in Bollywood are still treated as exceptions and not as part of the mainstream commercial fare.


That question matters because Alia is not an untested performer. In fact, she is one of the most accomplished stars of her generation, with both critical and commercial credibility. She has already shown that she can anchor a film, shape public curiosity and carry emotional complexity with ease. And yet, the moment a project like Alpha enters the market, it is often judged against an unfairly narrow standard of not whether it is good cinema, but whether a woman-led film can ‘open’ like a male-led event film. That context is part of the problem.


While Hindi cinema has always been willing to admire strong women on screen, it has been less willing to consistently pay for them in theatres and that gap shows up long before a film reaches the box office. It shows up in the budget sheet, the release strategy and the number of screens a distributor is willing to risk.


Start with money. Female-led films are routinely marketed on a fraction of what a comparable male-led film receives. Fewer promotional windows, fewer brand tie-ins and fewer high-value trailer drops. A film can be well-reviewed and still walk into its opening weekend with a fraction of the visibility that shapes first-day collections. In an industry where opening numbers set the narrative for a film’s entire run, that is not a small handicap, it is often decisive.


Female Characters

This is not a new issue. The industry has produced unforgettable female characters and a few rare female superstars, but the Indian film system has rarely built sustained institutions around them. The rare exceptions being Meena Kumari, Vyjanthimala, Hema Malini and Sridevi. The last, Sridevi, emerged at a time when economics and number-game started taking precedence in the cinematic evolution of Bollywood. From being the glamourous prop to the hero in Himmatwala (1983) and Tohfa (1984) to having films written around her with Nagina (1986), Mr India (1987), Chandni (1989), Chaalbaaz (1989), Lamhe (1991) and Khuda Gawah (1992), she turned the tables around for heroines and continues to remain the clearest historical example of what a true female star in Indian cinema can look like.


At her peak, Sridevi was not just admired, she was bankable. Films could revolve around her. Her presence changed the energy of a project. In certain films, heroes had to adjust to her command rather than the other way around. That kind of authority was not accidental. It was the result of extraordinary talent meeting a rare moment in the industry’s history when audiences, producers and writers briefly allowed a woman to dominate the frame.


But Sridevi's career also proves the rarity of that model. She remains the benchmark because few actresses after her, not even stars like Madhuri Dixit, Kajol, Aishwarya Rai, Kareena Kapoor or Deepika Padukone, were consistently given the same kind of female-led commercial vehicles. The industry celebrated her, but did not fully institutionalise her kind of stardom. Four decades later, the industry still hasn’t built the pipeline that would allow her successors to go beyond her. Deepika seemed poised to replicate that model before stepping away from it in recent years.

 

Revealing Discussion

That gap is what makes the discussion around Alia and Alpha so revealing. Alia is one of the few contemporary actresses who has repeatedly crossed the boundary between being an actor and star. She has done the intimate, performance-driven roles, such as Highway (2014), Udta Punjab (2016), Raazi (2018) and Gully Boy (2019) that win critical acclaim , and she has also participated in larger commercial ventures that expand her visibility, such as Brahmāstra: Part One – Shiva (2022), RRR (2022), Rocky Aur Rani Kii Prem Kahaani (2023), Gangubai Kathiawadi (2022) and Badrinath Ki Dulhania (2017). In theory, she should be exactly the kind of actress around whom a new era of female-led theatrical storytelling can be built. In practice, the industry still seems unsure how to market that proposition with confidence.


Part of the issue lies in the way Hindi cinema packages women-led films. Too often, these projects are framed as either ‘serious’ or ‘special’. They are presented as prestige dramas, social messages or exceptions to the norm. The masculine model of stardom, by contrast, is built on repetition, scale, and genre certainty. Male stars are supported by action, comedy, spectacle and franchise logic. Female stars are still too often limited to emotionally dense dramas or films that must prove their worth before the audience even enters the hall.


Genre gatekeeping also runs deeper than casting. Action franchises, cop universes and multi-part spectacles are almost never designed around a woman from the outset. Actresses get inducted into these worlds as guests in someone else's franchise, not as the anchor of their own. Without a female-led equivalent of a returning franchise, there is no mechanism for an actress's stardom to compound the way a male star's does, film after film.


Feminist Undertones

That’s not to say there were no feminist undertones in Lokah, but they felt organic. Naslen, the film’s hero and other male actors, including superheroes played by superstars Dulquer Salmaan and Tovino Thomas, seemed to be having a blast playing second fiddle to the heroine.


There is also a quieter, upstream problem in the scarcity of women writing and directing stories in Bollywood, barring Farah Khan, Meghna Gulzar and Zoya Akhtar. Lokah, in fact, had actress Santhy Balachandran playing an important role in giving a woman’s perspective to the narrative as the additional screenplay writer and dramaturgist. It is difficult to imagine something similar happening in the male-dominated Hindi film industry, unless the filmmaker happens to be the very conscientious Farhan Akhtar or an Aamir Khan.

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