India, Oct. 13 -- After nearly 12 years, India has raised the wage ceiling for mandatory Employees' Provident Fund (EPF) coverage from Rs.15,000 to Rs.25,000 a month. Millions of additional employees are expected to come under mandatory coverage, gaining access to provident fund savings, pension and insurance protection under the applicable schemes.

This is more than a social-security reform. It has implications for workforce costs, payroll operations and India's ongoing employment formalisation journey.

The timing is also significant. The change comes alongside a broader push towards formalisation, including the implementation of labour codes and employment-linked initiatives intended to extend social-security coverage and formal job c...