EPFO/ESIC cover may expand by 10 million

Raising the required coverage under ESI and EPF would boost both the number of contributors and the quantity of contributions, according to Akshay Jain, a partner at Saraf and Partners. Employees who make more than ₹15,000 can already choose not to participate in EPF; however, contributions would probably increase if the income threshold were raised by ₹10,000 to ₹15,000. In 2014, the salary cap was raised from ₹6,500 to ₹15,000. Up to this cap, 12% of wages are contributed by the business and the employee. An employee making ₹15,000, for example, contributes ₹1,800 per month; if the income ceiling were raised to ₹25,000, the required monthly contributions would rise to ₹3,000. As of right now, the employer's contribution is divided between the provident fund (3.67%) and the Employees' Pension Scheme (8.33%), while the employee's contribution is allocated to the provident fund. In light of growing expenses, Suma R V of King Stubb & Kasiva stated that a higher wage cap would assist workers in managing their money. According to Ashok Varma of Grant Thornton Bharat, gig workers will benefit from an increase in the ESIC wage ceiling under the new Code on Social Security, 2020, which broadens the scope of ESI coverage in India for businesses with ten or more employees.