New Delhi, Oct. 7 -- The Cabinet last month raised the wage ceiling eligibility for Employees Provident Fund (EPF) coverage by Rs.10,000, from the Rs.15,000 set in 2014, Union Information and Broadcasting Minister Ashwini Vaishnaw said.

The hike, which comes after 12 years, seeks to "reflect sustained wage growth, rising incomes and continued expansion of formal employment over the intervening years", the minister said.

For employees whose EPF contribution was earlier restricted to the Rs.15,000 ceiling, the employee contribution can increase. See illustration below:

The employer's statutory contribution in such a case would also increase from Rs.1,800 to Rs.3,000. However, the actual impact on an employee's take-home pay will depend o...