India, Sept. 21 -- The government has raised the wage ceiling for mandatory Employees' Provident Fund Organisation (EPFO) coverage to Rs.25,000 a month from Rs.15,000, with effect from September 17. The government expects this change to bring more than 5.1 million additional employees into the system.

The main change is for people joining the EPFO for the first time. Since September 2014, an employee who joined an establishment covered by the Employees' Provident Fund (EPF) on wages above Rs.15,000 was not automatically enrolled in EPF and the Employees' Pension Scheme (EPS). With the ceiling now at Rs.25,000, a new employee earning between Rs.15,000 and Rs.25,000 will come under mandatory coverage and, subject to the applicable rules, w...