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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

Ishan Rises as T20 Specialist

Feb 8
4 min read

In the high-octane world of T20 cricket, where every ball can swing fortunes and aggression reigns supreme, India faces a perennial wicketkeeper-batter conundrum: Ishan Kishan or Sanju Samson? Both are prodigiously talented, capable of dismantling bowling attacks on their day, and have donned the gloves for the national side. Yet, as we approach the T20 World Cup 2026, the scales tip decisively toward Ishan Kishan as the better choice. His explosive form, tactical fit, and reliability under pressure make him the ideal pick for a format that demands consistency amid chaos. While Samson dazzles with occasional brilliance, his inconsistency and recent slump highlight why Kishan should be India’s go-to man in the shortest format.


Let’s start with the numbers, which paint a telling picture. In T20 Internationals, Samson edges out in overall strike rate and experience, boasting 1032 runs in 52 matches at a strike rate of 148.06 and an average of 25.8. He has three centuries, a feat that underscores his potential for match-winning knocks. However, dig deeper, and the cracks appear. After his first 32 T20Is, Samson’s average dipped to 19.32 with a strike rate of 132.69, and only two fifties to his name. Kishan, in contrast, after the same number of games, amassed 796 runs at 25.67, striking at 124.37 with six half-centuries. While Kishan’s strike rate seems lower, his recent surge tells a different story. In the ongoing build-up to the World Cup, including the New Zealand series, Kishan has notched a 43-ball 103 and a 32-ball 76, showcasing a strike rate north of 200 in key innings. Samson’s scores in the same series? A dismal 10, 6, 0, and 24. This isn’t a blip; it’s a pattern. Samson’s T20I career is littered with highs like his 111 against Ireland but plagued by failures that leave India scrambling.


Beyond stats, Kishan’s playing style aligns perfectly with modern T20 demands. He’s a left-handed aggressor who thrives at the top, providing balance to a predominantly right-handed Indian lineup. This handedness disrupts bowlers’ lines, especially in powerplays where off-spinners and leg-spinners dominate. Since October 2023, Kishan has hammered 101 sixes in all T20s, at a rate of one every 9.64 balls—the best frequency among Indian batters with significant volume. His power-hitting is visceral: think of that 103 against New Zealand, laced with 10 sixes and six fours, turning a chase into a rout. Samson, a right-hander, relies more on elegance and timing, which can falter on slower pitches or against quality spin. His strike rate as an opener touches 180 in 18 innings, with 559 runs and three tons, but those centuries came in bilateral series against lesser attacks. Kishan, opening in 27 of his 32 T20Is, has 662 runs at a steady clip, with four fifties that often set the tone rather than steal the show. In T20s, foundations matter as much as fireworks, and Kishan’s ability to rotate strike while punishing loose balls makes him more reliable.


Wicketkeeping adds another layer. Both are competent, but Kishan edges ahead with sharper reflexes and better adaptability behind the stumps. Social media buzz often highlights this: one comparison notes Kishan as the “better wicket-keeper” alongside his aggression. Samson has fumbled in high-pressure scenarios, like the 2024 IPL where his Rajasthan Royals campaign ended amid keeping errors. Kishan, with Mumbai Indians, has been a consistent performer, even captaining in domestic circuits. For India, where Rishabh Pant is the primary keeper in longer formats, the T20 role needs someone who can seamlessly blend batting firepower with glove work. Kishan’s left-handed batting also allows flexibility in the order— he can open with Abhishek Sharma, creating a southpaw duo that terrorizes bowlers early.


Recent form seals the argument. In the warm-up against South Africa ahead of the 2026 World Cup, Kishan blasted 53 off 20 balls, including seven sixes, while Samson was benched entirely. This wasn’t coincidental; it signaled India’s intent. Kishan’s 53(20) in that game, coupled with his NZ exploits, has “impacted India’s T20 WC plans,” as one analyst put it, making the batting order “more clear and competitive.” Samson’s slump—failing to capitalize on opportunities—has led to calls for his exclusion, with experts like Parthiv Patel suggesting Kishan over him for the final NZ match. Even former captain Ajinkya Rahane backed Samson temporarily, but admitted Kishan might sit out only if Tilak Varma returns, implying the tide is turning. Online verdicts are blunt: after Kishan’s 103, the internet declared him “snatching” Samson’s spot.


This isn’t to diminish Samson, whose talent is undeniable. His range against spin and ability to accelerate in the middle order could still earn him a squad role. But T20 cricket is unforgiving; it rewards those who deliver consistently, not sporadically. India’s dominance since 2023— a 48-8 win-loss ratio in T20Is, with a run rate of 9.69—stems from batters like Kishan who embody relentless aggression. With Abhishek Sharma, Suryakumar Yadav, and Hardik Pandya in the mix, Kishan fits as the explosive opener who provides left-hand balance and keeping assurance.


In conclusion, for T20s, Ishan Kishan is the superior choice over Sanju Samson. His stats, style, and scorching form align with India’s blueprint for World Cup glory. Selectors must prioritize impact over potential—Kishan delivers that in spades. As the 2026 tournament looms, betting on him isn’t just smart; it’s essential for lifting the trophy.


(The writer is a senior journalist based in Mumbai. Views personal.)

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