Government Directs Companies Not to Cut Salaries as EPF Wage Ceiling Rises
On September 17, the government raised the EPFO wage ceiling from Rs 15,000 to Rs 25,000, extending mandatory coverage to over 10 million additional workers. This move aims to boost workforce formalisation. The ministry acknowledged in FAQs that the higher wage ceiling will increase employers' costs but directed companies not to reduce salaries.
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