New Delhi: In an important development for private sector employees, the Supreme Court has directed the Central Government to take a decision within four months on revising the wage ceiling under the Employees’ Provident Fund (EPF) scheme, which has remained unchanged for the last 11 years.
A bench comprising Justice J.K. Maheshwari and Justice A.S. Chandurkar passed the order on Monday while hearing a petition filed by social activist Naveen Prakash Nautiyal. The court observed that the issue affects a large section of the workforce and requires urgent consideration.
₹15,000 Wage Ceiling Excludes Crores of Employees
According to the petition, the Employees’ Provident Fund Organisation (EPFO) currently restricts coverage under the EPF scheme to employees earning a monthly salary of up to ₹15,000. As minimum wages in many parts of the country have already crossed this limit, a significant number of workers are being excluded from social security and provident fund benefits.
Counsel for the petitioner, Pranav Sachdeva and Neha Rathi, argued that the wage ceiling has no rational linkage with key economic indicators such as inflation, minimum wages, or per capita income, making the policy arbitrary and inconsistent.
Court Grants Time to Government
Disposing of the petition, the Supreme Court directed the petitioner to submit a representation to the Central Government within two weeks, along with a copy of the court’s order. The government has been asked to take an appropriate decision on the matter within four months thereafter.
Questions Raised on 70 Years of Policy
The petition highlighted that over the past 70 years, revisions to the EPF wage ceiling have been irregular and delayed, sometimes occurring after gaps of 13–14 years. While the scheme was more inclusive during its initial three decades, the last 30 years have seen policies that effectively exclude a growing number of employees.
It was also pointed out that in 2022, an EPFO sub-committee recommended raising the wage ceiling to include more workers, a proposal that was approved by the Central Board. However, the Central Government has yet to take a final decision.
The Supreme Court’s directive has raised hopes among private sector employees that the EPF scheme may soon become more inclusive, extending social security benefits to millions currently left out.