UPSC Prelims Practice Questions — Centre mulls proposal to hike wage ceiling for EPFO, ESIC at a uniform ₹25,000-30,000

Q1. The Employees' Provident Fund Organisation (EPFO), whose wage ceiling the Supreme Court in January 2026 directed the Centre to revise within four months, is a statutory body constituted under which one of the following enactments?

  • A. The Employees' State Insurance Act, 1948
  • B. The Payment of Wages Act, 1936
  • C. The Employees' Provident Funds and Miscellaneous Provisions Act, 1952
  • D. The Code on Social Security, 2020

Q2. With reference to the social security architecture under EPFO whose wage ceiling is proposed for revision in 2026, consider the following schemes: 1. Employees' Provident Fund Scheme, 1952 2. Employees' Pension Scheme, 1995 3. Employees' Deposit Linked Insurance Scheme, 1976 4. Employees' State Insurance Scheme, 1948 Which of the above is/are correctly identified as schemes administered by EPFO?

  1. Employees' Provident Fund Scheme, 1952
  2. Employees' Pension Scheme, 1995
  3. Employees' Deposit Linked Insurance Scheme, 1976
  4. Employees' State Insurance Scheme, 1948
  • A. 1 and 2 only
  • B. 1, 2 and 3 only
  • C. 2, 3 and 4 only
  • D. 1, 2, 3 and 4

Q3. With reference to the proposal of 2026 to standardise the wage ceilings of EPFO and ESIC, consider the following statements: 1. The EPFO wage ceiling of ₹15,000 was last revised in 2014, whereas the ESIC ceiling of ₹21,000 was last revised in 2016-17. 2. Both EPFO and ESIC fall under the administrative jurisdiction of the Ministry of Finance. 3. The 2026 proposal under examination by the Centre seeks to align both ceilings at a uniform band of ₹25,000–₹30,000 per month. Which of the statements given above is/are correct?

  1. The EPFO wage ceiling of ₹15,000 was last revised in 2014, whereas the ESIC ceiling of ₹21,000 was last revised in 2016-17.
  2. Both EPFO and ESIC fall under the administrative jurisdiction of the Ministry of Finance.
  3. The 2026 proposal under examination by the Centre seeks to align both ceilings at a uniform band of ₹25,000–₹30,000 per month.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q4. Which one of the following is the nodal Union Ministry that administers both the EPFO and the ESIC, and which is examining the 2026 proposal to standardise their wage ceilings at ₹25,000–₹30,000?

  • A. Ministry of Finance
  • B. Ministry of Social Justice and Empowerment
  • C. Ministry of Labour and Employment
  • D. Ministry of Corporate Affairs