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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

Center powered to take Aurangzeb tomb off heritage list

Writer: Aditi Pai
Aditi Pai
Mar 19, 2025
2 min read

Updated: Mar 20, 2025

archaeological Survey

Mumbai: More than 300 years after it was built, the ‘Tomb of Aurangzeb’ is back in the limelight as a Hindi film stokes an anti-Aurangzeb mood. But can the structure, which is protected by the Archaeological Survey of India be removed at the whims of a few?


The festive cheer in Maharashtra, in the week of Holi, has been disrupted by sporadic clashes and violence. The reason — an ancient tomb where Mughal emperor Aurangzeb has been buried in Khuldabad near Chhatrapati Sambhaji Nagar. While Aurangzeb has indeed been a polarising figure in Indian history, his name is sparking communal tensions and violence in parts of the state. Elected representatives are using the hallowed halls of the state legislature to heap insult and abuse on the opponent by likening them to the Mughal, who is currently best known for his atrocities.


A drive through Chhatrapati Sambhajinagar, formerly Aurangabad, barely nudges you towards this tomb in Khuldabad, where Sufi saint Khwaja Syed Zainuddin Shirazi is also buried. Aurangzeb died in March 1707 in present-day Ahilyanagar, earlier known as Ahmednagar. His wish, according to historical records, was to have a simple tomb, a far cry from the extravagant tombs of his predecessors. But despite its unassuming presence, the tomb, almost forgotten, is in the eye of a storm. If certain right-wing outfits and politicians are out to demolish it, others are demanding its protection. But even as political leaders make high-pitched demands for razing it to the ground, the rules state that the Government of Maharashtra has no power to remove a monument which is protected by the Archaeological Survey of India (ASI).


The Ancient Monuments Preservation Act, 1904 and The Ancient Monuments and Archaeological Sites and Remains Act, 1958 (AMASR Act) protect various monuments and structures and pieces of cultural heritage. The ASI, which comes under the Union Ministry of Culture, has more than 3500 historical monuments and archaeological sites under its purview for protection across the country. This includes palaces, forts, prehistoric rock shelters, rock-cut caves, places of worship of different faiths, burial sites, bathing ghats and water reservoirs, among others.


The AMASR Act prevents construction of any sort around a protected structure in a bid to preserve its glory and avoid any damage and there are strict penalties that can be imposed for defacing or destroying any part of such structures.


A monument of structure, however, can be dropped from the list according to Section 35 of the AMASR Act which states that the Central Government has the authority to de-list a structure if it is of the opinion that “any ancient and historical monument or archaeological site and remains declared to be of national importance by or under this Act has ceased to be of national importance.” All it needs is a notification in the Official Gazette, declaring that such a structure ceases to be of national importance.


In the current scenario, de-listing the tomb will need intervention from the Centre and is outside the jurisdiction of the state government.

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