Context: Union Cabinet approved raising the EPFO mandatory wage ceiling from ₹15,000 to ₹25,000, potentially adding ~51 lakh employees to PF coverage.
- Employees earning ₹15,000–₹25,000 will come under the Employees’ Pension Scheme (EPS), 2026.
- Employees’ Provident Fund Organisation (EPFO): Statutory body under the Ministry of Labour & Employment.
- Existing contributing EPFO members: ~7.98 crore.
- EPFO operates three major schemes under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952:
- Employees’ Provident Fund (EPF) Scheme, 1952 – provident fund.
- Employees’ Pension Scheme (EPS), 1995 – pension.
- Employees’ Deposit Linked Insurance (EDLI) Scheme, 1976 – life insurance benefit.
- EPS, 1995 replaced the earlier Employees’ Family Pension Scheme, 1971.
- Provides monthly pension to eligible employees and their families.
- Minimum pension: ₹1,000/month since September 2014.
- Nearly 82 lakh pensioners are covered; about 45% receive ₹1,000 or less.
- EPS is financed mainly through employer contributions and government support, with EPFO managing the pension fund.
- EPFO is administered through a tripartite Central Board of Trustees, comprising representatives of the Government, employers and employees.
