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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

Why do Indian superheroes fail to impress the audience?

Bharati Dubey
Aug 2
4 min read

Mumbai: Spider-Man continues to enjoy phenomenal success at the Indian box office, highlighting the country's enduring fascination with Hollywood superheroes. But the craze also raises an important question: Has Bollywood missed the opportunity to build its own superhero universe?


India has produced memorable superheroes like Shaktimaan and the Krrish franchise, while Indian comics are home to several iconic characters. Yet, unlike Hollywood, the Hindi film industry has not consistently developed the genre into a thriving franchise business.


Trade experts Atul Mohan and Taran Adarsh believe the reasons are rooted in long-term planning, storytelling and sustained investment.


Trade analyst Atul Mohan says Hollywood's dominance in India is the result of decades of strategic effort rather than overnight success.


"The commercial success of Hollywood films in India, particularly within the superhero genre, represents a gradual, long-term market shift rather than a sudden breakthrough. It is the result of a long-term strategy of patiently building a market that was once considered only an emerging opportunity."


Audience Perception

Recalling how the market evolved, Mohan says Hollywood films were once limited to a few theatres in major cities before Jurassic Park changed audience perceptions.


"In the early ’90s, Hollywood was restricted to a few screens in major metros like Mumbai and Delhi. Everything changed with Jurassic Park—it was the definitive turning point that proved Indian audiences were ready for massive big-screen spectacles. Soon after, Sony Pictures introduced Spider-Man (2002), which became one of the widest Hollywood releases of its time and a runaway success. Since then, every new Spider-Man film has expanded its reach and strengthened its fan base."


He believes the expansion of multiplexes across the country further accelerated Hollywood's growth.


"The rise of Spider-Man coincided with the rapid growth of multiplexes in India. As exhibition expanded beyond the metros into tier-II and tier-III cities, Hollywood event films found a much larger audience. Franchises such as Fast & Furious, Transformers, The Avengers and the wider Marvel and DC universes steadily built loyal fan bases. Studios also invested heavily in wider releases, dubbed versions and stronger marketing campaigns."


Hollywood’s Presence

According to Mohan, this sustained effort transformed Hollywood's presence in India.


"When a market shows sustained growth, every global studio naturally wants a larger share of it. Hollywood has done exactly that. From a negligible presence three decades ago, English-language films today contribute nearly 25-30% of India's annual box-office collections in many years, driven largely by franchise and superhero cinema. That growth has not happened by chance; it has been achieved through consistent investment, localisation, aggressive distribution and strong support from the multiplex ecosystem."


He adds that every new Spider-Man release is the result of a strategy that has been nurtured for more than two decades.


"When a Spider-Man film lands in theatres today, it’s not just another superhero release – it’s a major market event that shifts the entire theatrical landscape. It reflects a strategy that Hollywood has followed successfully for over two decades—creating recognisable franchises, nurturing audiences across generations and treating India as one of its most important international markets. Judging by the response these films continue to receive, this trend is only expected to become stronger in the years ahead."


Unexplored Genre

Trade analyst Taran Adarsh believes the Indian film industry has simply not explored the superhero genre enough.


"I don't know why we've not really tapped into that market. There have been attempts in the past where superhero films have come out. Krrish franchise has done very well, I'm not denying that. Tiger Shroff did a superhero film directed by Remo D'Souza which bombed very badly."


For Adarsh, the audience is already primed for the genre.


"Basically, we've not really tapped into that market. This market has tremendous potential. As far as Spider-Man is concerned or any Hollywood superhero film is concerned, those films have actually, over the decades, have become a part of our moviegoing experience. And Spider-Man used to come on TV also in animation. We've seen those films, and we've really liked Spider-Man saving the world, saving people from enemies. That kind of stories still remain intact."


Asked whether Indian superhero films have a future, Adarsh is confident.


"There is huge potential! But we've not been tapping that market."


He also believes India has no shortage of inspiring characters.


"There are many! I won't really recall names, but there are so many comic book characters that we can take. And there are real-life people who are superheroes. Everyone doesn't wear costume and be a superhero. But there are so many people who can be superheroes in real life and be projected on screen. So why not?"


Audience Support

Adarsh is equally confident that audiences would support Indian superheroes if the films match Hollywood's standards.


"Yes, if they can patronize Hollywood movies then why not Indian films? Of course, Hollywood is backed by solid storytelling as well as visual effects, but we can also do that."


Spider-Man's record-breaking run in India once again underlines the audience's love for superhero stories. The challenge, the experts suggest, is not convincing viewers to embrace Indian superheroes, but giving them compelling characters, strong storytelling and world-class filmmaking to believe in.

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