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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

Demystify. Democratize. Disseminate. Science for a New India

Shivkumar Kalyanaraman, Ponnurangam Kumaraguru, Kishore Paknikar
Jul 30
5 min read

Research communication must become as central to India’s scientific enterprise as research itself.

Humanity has never produced more science. Ironically, it has never been easier for important discoveries to remain unnoticed. Every day, tens of thousands of scientific papers and patents are added to the world's growing repository of knowledge. The challenge is no longer merely to generate new discoveries, but to ensure that worthwhile discoveries are found, understood and put to use. A paper buried in a journal or a patent hidden in a database realizes only a fraction of its potential. Research fulfils its highest purpose when ideas move beyond the laboratory to inspire further discoveries, influence public policy, stimulate enterprise and improve lives.


India has invested substantially in strengthening research, expanding higher education, promoting innovation and encouraging academia-industry collaboration. These investments are yielding encouraging results in publications, patents, startups and international partnerships. The next challenge is to ensure that this growing body of research creates the greatest possible scientific, technological, economic and societal value.


Strengthening the Ecosystem

Traditionally, research funding agencies have focused on supporting promising ideas, talented investigators and the infrastructure necessary for discovery. The Anusandhan National Research Foundation (ANRF) retains that mission while extending it further by strengthening the ecosystem through which publicly funded research creates value. Success can no longer be measured only by grants awarded, papers published or patents filed. It must also be measured by how effectively new discoveries are shared, built upon, translated into products and services, incorporated into public policy and ultimately improve society.


This broader vision should not be interpreted as diminishing the importance of curiosity-driven fundamental research. Many of history's greatest scientific breakthroughs emerged without any immediate application in mind. Quantum mechanics, number theory and molecular biology all began as explorations of fundamental questions before transforming technology and society. ANRF remains firmly committed to supporting such frontier science. The message is not that every discovery must immediately lead to a product or policy, but that every worthwhile discovery deserves the widest possible opportunity to enrich science itself and, where appropriate, benefit society.


Research communication is often mistaken for publicity. It is better understood as knowledge stewardship. Researchers are custodians of discoveries generated through years of intellectual effort and, frequently, public investment. Publishing fulfils the first responsibility; ensuring that discoveries reach those who can build upon them fulfils the second. Effective communication does not dilute science. It expands its reach, accelerates technology diffusion and increases the return on national investment in research.


ANRF's philosophy may be summarized in three guiding principles: Demystify. Democratize. Disseminate. Demystifying research means making it understandable without compromising scientific rigour. Democratizing research means enabling wider access across disciplines, institutions, languages and stakeholder communities. Disseminating research means ensuring that discoveries do not remain confined to journals and conferences but reach those who can transform them into new science, products, policies and societal solutions.


These principles reinforce one another. Demystified research becomes accessible; accessible research reaches wider communities; wider engagement accelerates scientific progress and innovation. Communication is therefore not the final stage of research but an integral part of the research enterprise. Research begins with curiosity and first advances knowledge. Effective dissemination enables other scientists to build upon that foundation and, where appropriate, translate it into innovations that benefit society. Scientific progress is cumulative: one discovery becomes the foundation for another. Communication therefore accelerates not only innovation but science itself, allowing great science to build greater science.


Indigenous Platform

One of ANRF's most significant initiatives reflecting this philosophy is SARAL AI, an indigenous artificial intelligence platform developed specifically for the research ecosystem. By enabling researchers to transform publications and patents into multilingual summaries, presentations, podcasts, videos and other communication products, it demonstrates ANRF's commitment to building indigenous digital infrastructure for research communication. More importantly, it reflects the conviction that India should not merely adopt artificial intelligence for science, but develop solutions tailored to the needs of its own research ecosystem.


Reimagining Research Communication to Maximize the Impact of Indian Research


Every research output has multiple audiences, from scientists and entrepreneurs to policymakers, educators, students and investors. Communicating effectively with each once demanded considerable time and specialized skills. Used responsibly, artificial intelligence now enables the same body of work to be presented in forms appropriate for different audiences while preserving scientific integrity. This is why communication infrastructure is becoming as important as physical research infrastructure. Platforms that make science more discoverable, understandable and reusable are strategic assets of a modern research ecosystem.


SARAL AI is part of a broader ANRF effort to improve the flow of knowledge across the research ecosystem through initiatives such as Office Hours with the CEO, Lightning Talks, webinars and grantee engagement programmes. Together, they reduce the distance between discovery and application by connecting researchers with industry, policymakers, investors and one another. Their objective is not to add to researchers' workload but to ensure that valuable research reaches those who can build upon it.


Research communication is closely linked to technology diffusion. Scientific discoveries achieve their greatest significance when they are adopted, adapted and translated into practical applications. A patent hidden in a database or a paper that remains unnoticed creates only limited value. When discoveries reach entrepreneurs, policymakers and fellow researchers, they generate impact far beyond publications or citation counts. Communication is the bridge that enables these transitions.


These developments are particularly important for early-career researchers, whose ideas often struggle for visibility despite their quality. AI-enabled communication tools can democratize opportunity by allowing promising work to reach wider audiences irrespective of institutional reputation or geographical location. Excellence should determine visibility, not visibility determine excellence.


Effective Dissemination

Deep technology rests on deep science. Every transformative technology originates in discoveries whose practical significance may not have been apparent when they were first made. This is why ANRF places equal importance on curiosity-driven frontier research and its effective dissemination. We no longer live in a world where publishing an outstanding paper is sufficient to ensure that it reaches those who can extend it. In today's crowded research landscape, even exceptional discoveries can remain unnoticed unless they are made discoverable, understandable and accessible. Effective dissemination allows frontier research to become part of the global scientific conversation, enabling one discovery to stimulate the next. Great science builds greater science.


India stands at an important moment in its scientific journey. Investments in universities, research institutions, deep-tech entrepreneurship and academia-industry partnerships are creating unprecedented opportunities. To realize their full potential, however, the country must invest not only in generating new knowledge but also in enabling ideas to circulate rapidly across disciplines, institutions and sectors. In a knowledge economy, communication performs the role that roads, railways and ports perform in a manufacturing economy. Without efficient transport, goods remain stranded; without effective communication, discoveries remain isolated.


As India aspires to become a global leader in science, technology and innovation, the challenge is not merely to produce more research but to ensure that every worthwhile discovery reaches the people and institutions capable of advancing it further. Research communication is therefore not an activity that follows research; it is an essential part of the research enterprise itself.


By helping researchers demystify science, democratize access to knowledge and disseminate discoveries more effectively, ANRF seeks to build an ecosystem where curiosity-driven research flourishes, ideas travel faster, collaborations emerge more naturally and innovation delivers greater scientific, technological and societal benefits.


Research creates knowledge. Great science builds greater science. Communication ensures that neither remains invisible.


(Dr. Shivkumar Kalyanaraman is the CEO, ANRF, New Delhi; Dr. Ponnurangam Kumaraguru is the Visiting Scientist, ANRF and Professor, International Institute of Information Technology, Hyderabad; Dr. Kishore Paknikar is the ANRF Prime Minister Professor, COEP Technological University, Pune. Views personal.)

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