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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

BJP in Pune: From margins to mainstream

Aug 31, 2025
4 min read

From Anna Joshi’s grassroots charm to Murlidhar Mohol’s ascendancy, the BJP has long treated Pune as a laboratory for grooming leaders. With another municipal election looming, the experiment is about to be tested again

Murlidhar Mohol
Murlidhar Mohol

Pune: When the Bharatiya Janata Party (BJP) was founded in 1980, Pune was hardly a bastion. The party’s presence was scattered; its cadre was spread thin and its symbol (a flickering oil lamp inherited from the Jana Sangh) was known more for token representation than serious power. Today, the story could not be more different. The BJP is preparing to contest the city’s municipal polls with the ambition of capturing more than 100 of the 165-odd seats. That confidence has been built not by accident but by a deliberate and decades-long strategy of continuously cultivating new leadership.


It is a method the party has deployed elsewhere in Maharashtra, most recently in Mumbai, where Ameet Satam, a three-term legislator from Andheri West, was recently appointed president of the city unit. But in Pune, the practice has been almost laboratory-like in its consistency. From the 1980s onward, the party has elevated figures, encouraged experimentation, and relied on collective leadership when necessary. Each generation of leaders was carefully given space to grow, and sometimes even allowed to fail.


The first crop of BJP leaders in Pune - Rambhau Mhalgi, Anna Joshi, Arvind Lele, Prem Advani and Shankarrao Yadav - were men of organisation more than mass. Of them, Anna Joshi and Arvind Lele formed the most potent duo. Joshi was personable and affable, able to converse with workers and voters across the social spectrum. Lele, by contrast, was the party’s ideological anchor, a meticulous organiser who supplied the structure Joshi’s charisma needed. The combination proved effective as Joshi bested seasoned Congress leaders in the Assembly and Lok Sabha contests. Whispers at the time suggested that Sharad Pawar’s loyalists quietly aided Joshi’s rise, though the BJP’s success was also a testament to its growing roots.


In 1984, the party fielded Jagannathrao Joshi, a scholar-politician of formidable intellect and oratory, though he lost the election. Yet his candidacy marked a turning point. He appealed to the city’s educated middle classes and, more importantly, legitimised the BJP’s ideological seriousness. In effect, he tilled the ground for the next generation of Pune’s BJP leaders to flourish.


Generation next

That next generation emerged rapidly. The 1980s and 1990s saw the rise of Girish Bapat, Yogesh Gogawale, Vishwas Gangurde, Vijay Kale, Pradeep Rawat, Anil Shirole, Dilip Kamble and Ashok Salunke. National heavyweights like Pramod Mahajan and Gopinath Munde were quick to spot the promise of Pune’s emerging cadre, ensuring they were nurtured and rewarded. Bapat, who contested the 1996 Lok Sabha elections, established city-wide networks that propelled him into the ranks of state and national politics. Rawat became an MP in 1999; Shirole was elevated to both city president and parliamentarian. By the end of the 1990s, the BJP in Pune had gone from fringe to fixture.

This was not merely a story of individual elevation but of systematic opportunity. Those who demonstrated loyalty and competence were given their turn. Bapat became both cabinet minister and MP. Prakash Javadekar rose to the Union cabinet. Dilip Kamble held ministerial rank. Vijay Kale and Vishwas Gangurde became legislators, later chairing the municipal corporation. Ujwal Keskar became leader of the opposition in the same body. Even those who did not scale dizzying heights like Gogawale and Vikas Mathkari were trusted with corporator and city president roles.


The strategy was not limited to men. When Sharad Pawar, then Chief Minister, introduced the 33 percent reservation for women in local self-government bodies, the BJP capitalised on it. It fielded and promoted women leaders, who would go on to reshape its Pune story. Mukta Tilak became the city’s first BJP mayor in 2017 and later an MLA. Medha Kulkarni secured both legislative and parliamentary berths. Madhuri Misal, thrice elected corporator, rose to become a minister of state. These successes were built on the path first trodden by Maltibai Paranjape of the Jana Sangh, the lone woman corporator of an earlier era. Her symbolic presence became substantive reality.


Collective leadership

By the 2010s, the BJP’s Pune bench was so deep that collective leadership again became the order of the day. Today, Union Minister of State Murlidhar Mohol, higher education minister Chandrakant Patil, city president Dheeraj Ghate, MLAs Siddharth Shirole, Sunil Kamble, Hemant Rasne, Ganesh Bidkar, Srinath Bhimale and Jagdish Mulik all represent the city’s multiple strands of BJP power. Of these, Mohol is being entrusted with particular responsibility. Chief Minister Devendra Fadnavis, long attentive to Pune’s strategic importance, has ensured that this generation is tested early and often.


Whether this strategy will deliver another sweep in the municipal elections remains uncertain. The BJP today faces a crowded political landscape, with rivals eager to exploit anti-incumbency and discontent over local governance. Yet history suggests that the BJP’s ‘Pune model’ which has constantly fed new leaders into the machine is built for endurance. The party does not merely win elections but creates a cadre capable of contesting and consolidating power across generations.


If the BJP secures more than 100 seats in the upcoming municipal polls, as it hopes, it will confirm not just a city-wide dominance but the efficacy of a political experiment that has been running quietly since 1980. From Anna Joshi’s charisma to Jagannathrao Joshi’s intellect, from Girish Bapat’s organisational heft to Mukta Tilak’s pioneering mayoralty, Pune has been both crucible and showcase. The party has repeatedly reinvented itself here. The BJP may well be the most disciplined practitioner of a simple political truth which is, in Pune, leaders are not born - they are made.

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