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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

Fahim Khan, six others booked for sedition

Correspondent
Mar 20, 2025
5 min read

Updated: Mar 21, 2025

Fahim Khan

Nagpur: The cyber police have booked local leader Fahim Khan, a key accused in the Nagpur violence, and five others on charges of sedition and spreading misinformation on social media during the unrest here, officials said on Thursday.


These six persons are among 50 accused against whom the cyber department has registered four First Information Reports (FIRs) in connection with the violence here on Monday, they said.


The cybercrime department has also asked for information from Facebook, X, Instagram and YouTube authorities about 230 profiles on their platforms and sought for them to be blocked, DCP Cyber Crime Lohit Matani said at a press briefing.


As soon as the department gets the information, the accused will be identified and arrested, he said.


The official said their probe has indicated that misinformation was spread initially after some videos were shared on social media, which fuelled violence further and then more videos "glorified the violence".


Six persons, including Minority Democratic Party (MDP) city head Fahim Khan, have been booked for sedition in the cyber police's FIRs, Matani said.


Rumours about a ‘chadar' with holy inscriptions being burnt during protests led by the Vishwa Hindu Parishad (VHP) seeking the removal of Mughal emperor Aurangzeb's tomb, located in Chhatrapati Sambhajinagar district, was the prima facie trigger for violence on Monday.


Matani said Khan edited a video of a protest against Aurangzeb's tomb, and circulated it (on social media) and he had also shared videos of "glorification of the violence".


The four FIRs have been registered in connection with the creation of provocative videos of protest against Aurangzeb's tomb and their circulation to instigate violence.


Besides, clippings of violence were shared (on social media) to incite more riots.


Also, indecent posts were shared which further instigated the violence, and videos of the riots and chants (made by some people) were glorified to trigger more violence, Matani said referring to the FIRs.


Asked if Khan was the mastermind of the violence, Nagpur Commissioner of Police Dr Ravinder Kumar Singal, said that investigations were underway to identify attackers and the role of the persons named in the FIR.

 

Curfew lifted, relaxed in parts of Nagpur

Curfew was lifted or relaxed in some areas of Nagpur on Thursday, three days after violence rocked the city, officials said.


Violent mobs went on a rampage in central Nagpur areas on Monday night amid rumours that a ‘chadar' with holy inscriptions was burnt during protests led by VHP and Bajrang Dal for the removal of Mughal emperor Aurangzeb's tomb located in Chhatrapati Sambhajinagar district.


Subsequently, curfew was imposed in Kotwali, Ganeshpeth, Tehsil, Lakadganj, Pachpaoli, Shanti Nagar, Sakkardara, Nandanvan, Imambada, Yashodhara Nagar and Kapil Nagar police station areas.


Considering the people's convenience and law and order, Commissioner of Police Ravinder Singal ordered the lifting of curfew from Nandanvan and Kapil Nagar police station areas from 2 pm on Thursday.


Besides, Singal ordered for the relaxation of curfew in Lakadganj, Pachpaoli, Shantinagar, Sakkardara and Imambada areas from 2 pm to 4 pm to allow the people to venture out to buy the essential items of daily need.


18 special teams to nab culprits

Police have formed 18 special teams to track down and arrest those involved in the violence in Maharashtra's Nagpur city, officials said on Thursday.


As of now, 69 persons have been in connection with the violence which took place here on Monday. Curfew remained imposed in several areas of the city for the third day on Thursday.


The police have so far identified 200 accused and are actively working to identify another 1,000 suspects captured in CCTV footage of the riots, a senior official said.


On Monday, five First Information Reports (FIRs) were registered at the Ganeshpeth and Kotwali police stations wherein 200 accused have been named.


Efforts were on to identify the others involved in the violence with the help of the CCTV footage, the official said.


Nagpur Commissioner of Police Dr Ravinder Kumar Singal on Wednesday told reporters that the special teams formed include personnel from the Ganeshpeth, Kotwali and Tehsil police stations, along with the Crime Branch.


The teams are also working closely with the cyber cell to help identify the suspects, another official said.


Thirty-three police personnel, including three DCP-rank officers, were injured on Monday night when mobs went on a rampage, damaging vehicles, hurling petrol bombs and stones at police, and attacking houses.

 

Cyber cell finds over 140 objectionable posts

The Cyber department has identified more than 140 posts and videos containing objectionable contents across social media platforms aimed at inciting communal unrest, officials said.


These videos and posts were found uploaded on Facebook, Instagram, X and YouTube, an official said on Wednesday.


Notices have been issued under section 79(3)(b) of the Information Technology (IT) Act 2000 to facilitate the immediate take-down of such content, he said.


Additionally, notices have also been served under section 94 of the Bharatiya Nagarik Suraksha Sanhita (BNSS) to uncover the real identities of the individuals operating these accounts.


The Maharashtra Cyber, in coordination with the Nagpur City Cyber police station, has identified multiple social media accounts engaged in disseminating objectionable content concerning the Nagpur riots which took place on Monday.


The content in question was deliberately designed to hurt the sentiments of a particular religious group, incite communal unrest, and further escalate the ongoing law and order situation in the state, the Maharashtra Cyber stated in a release.


By exploiting deeply held beliefs, such material seeks to provoke the public, create discord and deepen divisions within communities, it said.


Such actions not only violate legal provisions but also pose a serious threat to peace and stability, it added.


Noting that riots have caused significant damage to public property, the cyber department said strict legal action will be taken against those responsible for spreading such provocative content.

 

Probe harassment of woman cop: Gorhe to DGP

The state’s legislative council Deputy Chairperson Neelam Gorhe on Wednesday directed the DGP to conduct an immediate inquiry into the alleged harassment of a woman police constable during a violent clash in Nagpur.


A group of rioters allegedly touched the constable inappropriately and tried to disrobe her during the violence on Monday after protests against Mughal emperor Aurangzeb's tomb, officials had said.


Calling the incident "extremely shameful and outrageous", Gorhe said, "The accused must be identified immediately, and an inquiry should be conducted by the DGP. It should also be examined whether other women in the area faced any harassment during violence".


Speaking in the council, Gorhe stressed the need for special planning to prevent such incidents in the future and called for enhanced security measures for women police personnel.


"There should be specific provisions to ensure the safety of women police officers, along with adequate training and necessary equipment. Attacks on women police officers are serious and unacceptable. Strict measures will be taken immediately to prevent such incidents," Gorhe said.

 

Congress slams Mahayuti

The state’s Congress chief Harshvardhan Sapkal on Wednesday slammed the state government for organising dinner parties for elected representatives two days after violence swept Nagpur city.


Presiding officers of both Houses of the state legislature hosted a dinner for elected representatives on the lawns of the legislature complex on Wednesday, while a minister who gives provocative speeches to disturb the communal harmony has organised a party for elected members on Thursday, Sapkal said.


He tagged invitations extended by Minister Nitesh Rane, legislative council Chairperson Ram Shinde, and assembly Speaker Rahul Narwekar.

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