The Supreme Court has directed the Central government and the Employees’ Provident Fund Organisation (EPFO) to decide, within four months, on revising the wage ceiling under the Employees’ Provident Fund Scheme (EPFS), which has remained unchanged for the past 11 years.
A Bench of Justices J.K. Maheshwari and Atul S. Chandurkar passed the directions while hearing a public interest litigation (PIL) highlighting that the stagnant wage ceiling has resulted in a large section of workers being excluded from the ambit of the EPFO, a social welfare scheme intended to provide social security to employees in the organised sector.
The petition, filed through advocates Pranav Sachdeva and Neha Rathi under Article 32 of the Constitution, contended that the existing wage ceiling of Rs 15,000 per month is arbitrary and irrational and has no linkage with inflation, minimum wages, or growth in per capita income, despite repeated recommendations by expert bodies and Parliamentary committees.