The Supreme Court on Friday declined to further consider a petition seeking revision of the wage ceiling under the Employees’ Provident Fund Scheme after noting that the Union Cabinet has already approved an increase in the ceiling from Rs 15,000 to Rs 25,000 per month.
A bench of Justice B V Nagarathna and Justice Augustine George Masih said that following the Cabinet’s decision, it expected the authorities to take the necessary consequential steps, including issuance of the notification.
The petition had sought immediate revision of the Rs 15,000 monthly wage ceiling, which has remained unchanged since September 2014. It also sought a mechanism for periodic future revisions based on objective economic indicators.
Notification Yet To Be Issued
During the hearing, counsel for the petitioner pointed out that although the Cabinet had approved the increase, the formal notification had not yet been issued.
Taking note of the submission, the bench said the petition did not require further consideration because consequential action was expected to follow the Cabinet decision.
The court also referred to reports about the Cabinet approval and indicated that the government would issue the notification.
Cabinet Approved Rs 25,000 Ceiling On September 16
The Union government on September 16 approved raising the wage ceiling for mandatory EPFO coverage from Rs 15,000 to Rs 25,000 per month. The move is aimed at extending provident fund savings and pension protection to a larger number of employees.
Information and Broadcasting Minister Ashwini Vaishnaw, while announcing the decision at a press briefing on September 16, said the new ceiling for provident fund deduction would be Rs 25,000 per month.
According to Vaishnaw, the revision is expected to bring more than 51 lakh additional employees under mandatory EPFO coverage.
The Ministry of Labour and Employment had said that the revised wage ceiling would take effect from Vishwakarma Day on September 17.
Plea Sought Formula For Future Revisions
Apart from an immediate increase in the wage ceiling, the petition had asked the Supreme Court to direct the Centre and the Employees’ Provident Fund Organisation to consider and implement a dynamic formula or objective criteria for future revisions under the Employees’ Provident Fund Scheme.
It also sought a mandatory annual mechanism for reviewing the ceiling with reference to economic indicators including minimum wages, inflation, the consumer price index, income tax exemption thresholds and per capita net national income.
The EPFO wage ceiling had remained unchanged between 2004 and 2014. It was last increased to Rs 15,000 per month in September 2014.
