Govt to soon decide higher EPFO, ESIC wage ceilings: Mansukh Mandaviya

The labour ministry will shortly decide on raising EPFO and ESIC wage ceilings, fixing a national floor wage and increasing the minimum pension under EPS, as it targets wider social security coverage

The Ministry of Labour and Employment will soon decide on raising the wage ceilings of the Employees’ Provident Fund Organisation and the Employees’ State Insurance Corporation, as well as fixing a national floor wage and increasing the minimum pension under the Employees’ Pension Scheme, 1995, Union labour minister Mansukh Mandaviya said on Friday.

 

What issues have been raised by trade unions?

 

Speaking at the 21st All India Triennial Conference of the Bharatiya Mazdoor Sangh, Mandaviya said the organisation had raised these issues with the Centre during recent meetings. He said the government would examine the demands and take decisions in the interest of workers.

   

What are the current EPFO and ESIC wage ceilings?

 

At present, the EPFO wage ceiling is ₹15,000 per month, while the ESIC threshold is ₹21,000. The minimum pension under the Employees’ Pension Scheme stands at ₹1,000 per month.

 

How wide is India’s social security coverage now?

 

The labour ministry aims to extend social security coverage to 100 crore workers by March 2026, from about 94 crore currently. According to the ILOSTAT database, India’s social security coverage stood at 64.3 per cent in 2025, up from 19 per cent a decade ago.

 

What is the status of discussions within EPFO?

 

The Central Board of Trustees of the EPFO has discussed the issue of raising wage ceilings for EPFO and ESIC in several recent meetings, but no decision has yet been taken, according to people aware of the matter. Trade unions and industry representatives have differing views on the appropriate level of the revised ceilings.

 

How do labour codes address industry–worker relations?

 

Mandaviya said conflicts between industry and workers are harmful to the country’s development, and cooperation between the two is essential for workers’ welfare. He added that the labour codes will promote coordination between industry and trade unions.

 

What changes do the new labour codes envisage?

 

The minister said the new codes will ensure equal pay for men and women and end wage discrimination. The Code on Social Security, 2020 replaces nine earlier labour laws and lays down new provisions for social security coverage, while the Code on Wages, 2019 empowers the Centre to fix a national floor wage applicable across states, though the threshold is yet to be notified.