May 25, 2001

    The Government has increased the wage ceiling for coverage under the Employees Provident Fund Scheme from Rs.5000/- to Rs.6500/- per month. A similar amendment has been made in the Employees Pension Scheme and Employees Deposit linked Insurance Scheme. The government has also decided to make its contribution of 1.16 per cent upto the actual wage of Rs.6500/- per month towards Employees Pension Scheme. The new ceiling comes into effect from 1^st June 2001.

    The EPF Scheme coveres 3.26 lakh establishments with 24.53 million subscribers. The Employees Provident Funds and Miscellaneous Provisions Act is currently applicable to 177 industries/classes of establishments employing 20 or more workers. In 172 categories of establishments the minimum rate of contribution to the provident fund by employees and employers is 12%. But in case of five industries viz., brick, beedi, jute, coir and guargum, the minimum rate of contribution is only 10%. 8.33 per cent of the Employer’s contribution is credited into the employee’s pension fund while the government contributes 1.66 per cent.