Govt Shelves Plan To Expand Social Security Net, Not To Hike Basic Salary


New Delhi: The Union government has shelved a plan to expand the social security net for nearly six million organized sector employees in a bid to ease the burden on the government exchequer.

The labour ministry has decided not to act on a proposal approved by the central board of Employees Provident Fund Organization (EPFO) to increase the salary threshold from up to Rs15,000 to Rs21,000 per month to bring more workers under mandatory EPF coverage and give them PF and pension benefits.

The government decided to shelve the plan because it will lead to additional expense. However, not increasing the salary threshold may not go down well with workers’ unions at a time of rising anti-government protests across the country.