The wage ceiling and headcount restriction should be lifted, according to the Employees’ Provident Fund Organisation (EPFO), so that all formal employees and self-employed people can join the organization’s retirement saving programmes. It is talking about the problem with interested parties and has even contacted the states.
The current statutory wage maximum for employees is 15,000 rupees, and only businesses with 20 or more employees are eligible to participate in its programmes, including the flagship Employees’ Provident Fund (EPF) plan, which has more than 55 million active members.
The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952, will no longer have any restrictions, allowing the EPFO to offer its programmes to self-employed people as well. The laws will need to be changed in order to make the programme available to all employees in the formal sector as well as independent contractors, a senior government source told ET.