Widening the ambit

The coverage of the employees Provident Fund Organisation (EPFO) is being widened. The newly constituted Central Board of Trustees of the EPFO has recommended an increase in the coverage of the fund to establishments that have more than 10 employees.

Broadening the net EPFO coverage to be widened Establishments with more than 10 employees to be brought under the net Threshold coverage limit to be altered for the first time in 48 years

Currently, it is mandatory for establishments with more than 20 employees to subscribe to EPF. If the new coverage norms are notified by the government, nearly 4-4.5 million people will be covered.

This is the first time in 48 years that trustees felt the need to change the threshold limit for coverage.

Clearly, there are rumblings of change at EPFO as competition in the form of New Pension System (NPS) is taking shape.

—Shalini S. Dagar