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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

Is Priyanka Gandhi the Congress’s Best Bet?

Dec 30, 2025
5 min read

As the grand old party falters, the Congress’ most assured parliamentary voice is forcing a long-deferred reckoning on leadership.

With electoral reverses in Bihar, chronic infighting in Karnataka, and organisational drift elsewhere, Congress can no longer evade the question of leadership. It is in this context that Priyanka Gandhi Vadra’s measured but firm address in Parliament assumed significance. Delivered during the Winter Session debate commemorating 150 years of Vande Mataram, her speech cut through the chamber’s cacophony with clarity rather than confrontation. Its viral resonance has reignited a debate the party has avoided: has Congress already found its most persuasive parliamentary voice?


The question sharpened after former Odisha MLA Mohammed Moquim wrote to Sonia Gandhi, flagging Rahul Gandhi’s prolonged absences, limited accessibility, and thin engagement with party workers, while urging Priyanka to assume a larger national role. Similar anxieties had surfaced earlier from Assam Chief Minister Himanta Biswa Sarma, before his eventual defection to the BJP. Moquim’s expulsion from the party may have restored formal discipline, but it sidestepped the real problem: stifling dissent only postpones the reckoning.


Leadership Test

When a first-term MP commands attention across party lines while the designated Leader of the Opposition (LoP) struggles with visibility, the debate shifts from lineage to performance. When Rahul was away in Germany and facing BJP criticism for frequent overseas trips, Priyanka led the Congress in the Lok Sabha. She launched a scathing attack on the government over replacing MGNREGA with the VB Gram G Bill, highlighting its potential impact on rural employment.


This was not an isolated performance. It followed her widely praised maiden speech in December 2024 during the Lok Sabha debate marking 75 years of the Constitution- in a 32-minute intervention, Priyanka adopted a combative yet controlled tone, addressing the Opposition’s principal concerns with precision. She flagged the BJP’s alleged attempts to undermine the Constitution, raised questions over the Adani Group’s growing dominance, spoke to violence against women and unrest in Sambhal and Manipur, and pressed for a nationwide caste census by ensuring that the speech could not be ignored. Rahul himself conceded that it was better than his own maiden speech in 2004. Once may be chance; twice begins to resemble capability. In contrast, even after years of parliamentary experience, Rahul’s recent intervention on electoral reforms was widely seen as long on rhetoric but short on substance.


The contrast becomes sharper against Priyanka’s uneven political journey. She stayed away from frontline politics until 2019, when she was appointed Congress general secretary in charge of eastern Uttar Pradesh, ahead of the General Elections. Congress, fighting in alliance with the Samajwadi Party, won only one seat - Raebareli, retained by Sonia Gandhi - while Rahul Gandhi lost Amethi. Priyanka escaped serious blame because the dice were already loaded. Her real test came later, when Jyotiraditya Scindia, who had been in charge of western Uttar Pradesh, exited Congress in 2020, and the entire charge of the state of UP was then handed to Priyanka. The 2022 Assembly elections were billed as her moment. She led the campaign, promised 40 per cent tickets for women, and popularised the slogan “Ladki hoon, lad sakti hoon.” The messaging was fresh, but the verdict was harsh: Congress won just two of 403 seats, and its vote share fell from 6.25 per cent to 2.33 per cent. Political courage without organisational depth rarely delivers success.


Visible Campaigner

The 2024 Lok Sabha elections offered Priyanka a different role. She did not contest initially but emerged as one of the party’s most visible campaigners, travelling across 16 states and one Union Territory. During the campaign, Prime Minister Modi warned voters that Congress would survey women’s gold, including mangalsutras, to redistribute wealth. Priyanka struck back, recalling how Sonia Gandhi had sacrificed her own mangalsutra for the nation. In Uttar Pradesh, she camped in Raebareli and Amethi- the two Gandhi family bastions, helping secure victories for Rahul and Kishori Lal Sharma respectively. The SP-Congress alliance won 43 of the state’s 80 seats, dealing the BJP a shock and contributing to its reduced national tally. When Rahul later vacated his Wayanad seat, which he had won with around 58 per cent of the votes, Priyanka contested the by poll and won by a thumping margin, securing roughly 65 per cent. Numbers do not explain everything, but they rarely mislead entirely.


Inside Parliament, Priyanka has arguably been more convincing than on the campaign trail. Her interventions have been sharp without being shrill. Priyanka called on Modi to close the chapter on Nehru’s ‘blunders’ and confront the real challenges of unemployment and poverty, flipping BJP rhetoric into a governance test. Rahul’s uneven record makes the contrast unmistakable. As per PRS India, between 1 June 2019 and 10 February 2024, his attendance was just 51 per cent - well below the 71 per cent national average; he participated in only eight debates and asked 99 questions, compared to national averages of 16 debates and 210 questions. Even after becoming LoP in June 2024, when signing the attendance register is not mandatory, he participated in just 11 debates and raised 34 questions against averages of 16 and 74. Measured against this, Priyanka’s attendance ranged from 83 to 90 per cent, with active participation in debates, reflecting a consistently serious parliamentary approach.


Dynasty or Delivery?

This duality defines the Congress’s dilemma. Rahul is criticised for inconsistency and frequent absences. Party president Mallikarjun Kharge, widely respected but constrained, has struggled to contain factionalism. Retaining him largely to deflect charges of dynastic politics has not strengthened strategy. The dynastic tag will persist regardless of leadership, but electoral outcomes are determined by performance, not pedigree. Congress needs organisational rejuvenation and credible parliamentary leadership. If Priyanka combines consistent presence with strategic engagement, she could provide the focus the party has long lacked. Though replacing Rahul with Priyanka cannot be a cure-all, within Parliament she has shown the ability to challenge the BJP with poise rather than provocation. Rahul, despite holding positions on statutory bodies from the selection of the CBI Director to the Central Information Commissioner, has struggled to make a visible mark. In contrast, after the Lok Sabha adjourned sine die, a cordial tea-party photograph of Priyanka with PM Modi, LS Speaker Om Birla, Defence Minister Rajnath Singh, and others sent a powerful signal: she can forge connections and project influence more effortlessly, gradually stepping out of her sibling’s shadow.


Yet, for Priyanka, the road ahead is full of challenges. She has shown command over parliamentary proceedings and maintained consistent engagement, yet this contrasts with her campaign record—despite tireless efforts in Maharashtra and Bihar, Congress achieved only limited success. This underscores that while she exudes political presence in Parliament, her ability to convert that into mass mobilisation remains unproven. Political hurdles too remain, as her husband’s scrutiny by investigative agencies is a vulnerability. But if she tackles issues that resonate more directly with the common citizen, rather than dwelling on Rahul’s familiar narratives like vote-chori allegations, she could carve out her own space.


In the end, voters hold the verdict. But for a party that has spent a decade waiting for the Rahul project to soar, the answer may already be sitting quietly beside him. When all doors appear closed, sometimes the one left ajar deserves a closer look.


(The writer is a political commentator. Views personal.)


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