UPSC Prelims Practice Questions — Cabinet Approves Higher EPFO Wage Ceiling of Rs. 25,000, Expanding Mandatory Coverage

Q1. The most recent enhancement of the wage ceiling for mandatory coverage under the EPFO, prior to the enhancement approved in 2026, took effect in which one of the following years?

  • A. 2004
  • B. 2009
  • C. 2014
  • D. 2019

Q2. The proposal to enhance the EPFO wage ceiling for mandatory coverage to Rs.25,000 per month was moved before the Union Cabinet by which one of the following?

  • A. The Ministry of Finance, through the Department of Financial Services
  • B. The Ministry of Labour & Employment
  • C. The Ministry of Statistics and Programme Implementation
  • D. The Ministry of Corporate Affairs, through the Department of Public Enterprises

Q3. The organisation that operationalises the EPF, EPS and EDLI Schemes is headed by an officer who also serves as Member Secretary of its Central Board of Trustees. That officer is:

  • A. The Director General of the Employees' State Insurance Corporation
  • B. The Chief Labour Commissioner (Central)
  • C. The Secretary, Ministry of Labour & Employment
  • D. The Central Provident Fund Commissioner

Q4. Among the social security schemes administered by the EPFO, which one was the earliest to be framed?

  • A. The Employees' Provident Fund Scheme
  • B. The Employees' Deposit Linked Insurance Scheme
  • C. The Employees' Pension Scheme
  • D. The Employees' State Insurance Scheme

Q5. In the context of the Cabinet decision of September 2026, the figure of Rs.25,000 per month is best described as which one of the following?

  • A. The minimum monthly wage an establishment must pay before it becomes liable to register itself with the EPFO under the governing Act
  • B. The maximum monthly pensionable salary prescribed for computing the pension payable to a member who has completed the requisite contributory service
  • C. The monthly wage up to which an employee of a covered establishment must compulsorily be enrolled under the provident fund, pension and insurance schemes
  • D. The monthly wage on crossing which an existing member must cease contributing and have the accumulations transferred to another retirement savings vehicle

Q6. The enhancement of the EPFO wage ceiling from Rs.15,000 to Rs.25,000 per month was approved by which one of the following authorities?

  • A. The Central Board of Trustees of the EPFO, on the recommendation of its Executive Committee
  • B. The Union Cabinet, chaired by the Prime Minister
  • C. Parliament, through an amendment to the EPF & MP Act, 1952
  • D. The Ministry of Finance, in consultation with the Central Provident Fund Commissioner

Q7. Under the Code on Social Security, 2020, the contribution payable by an aggregator towards the Social Security Fund is best described as which one of the following?

  • A. Between 1 and 2 per cent of the aggregator's annual turnover, subject to a limit of 5 per cent of the amount paid or payable by it to gig and platform workers
  • B. Five per cent of the aggregator's annual turnover, subject to a limit of 2 per cent of the amount paid or payable by it to gig and platform workers
  • C. Between 1 and 2 per cent of the amount paid or payable by it to gig and platform workers, subject to a limit of 5 per cent of its annual turnover
  • D. A uniform 4 per cent of the wages payable to gig and platform workers, shared equally between the aggregator and the worker concerned

Q8. The notification issued by the administering ministry bringing the Code on Social Security, 2020 into force along with the other three Labour Codes took effect from which one of the following dates?

  • A. 1 September 2014
  • B. 1 April 2021
  • C. 21 November 2025
  • D. 17 September 2026

Q9. Consider the following statements regarding the Employees' Pension Scheme, 1995: 1. The Employees' Pension Fund is built up from a contribution by the employer at 8.33 per cent of wages, together with budgetary support from the Central Government. 2. A member must ordinarily complete ten years of contributory service to become eligible for pension under the Scheme. 3. The Scheme is structured as a 'Defined Contribution-Defined Benefit' social security scheme. 4. The Scheme is additionally financed by a dedicated contribution of 8.33 per cent of wages deducted from the employee. Which of the statements given above is/are correct?

  1. The Employees' Pension Fund is built up from a contribution by the employer at 8.33 per cent of wages, together with budgetary support from the Central Government.
  2. A member must ordinarily complete ten years of contributory service to become eligible for pension under the Scheme.
  3. The Scheme is structured as a 'Defined Contribution-Defined Benefit' social security scheme.
  4. The Scheme is additionally financed by a dedicated contribution of 8.33 per cent of wages deducted from the employee.
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 2 and 3 only
  • D. 1, 2, 3 and 4

Q10. Consider the following statements regarding the Employees' Deposit Linked Insurance (EDLI) Scheme: 1. The maximum assurance benefit under the Scheme was raised to Rs.7 lakh from the earlier Rs.6 lakh. 2. A minimum assurance benefit of Rs.2.5 lakh is available where the deceased was a member for a continuous period of twelve months preceding death. 3. The assurance amount is payable to the eligible family members of a deceased member. 4. The Scheme is administered by the Employees' State Insurance Corporation under the Employees' State Insurance Act, 1948. Which of the statements given above is/are NOT correct?

  1. The maximum assurance benefit under the Scheme was raised to Rs.7 lakh from the earlier Rs.6 lakh.
  2. A minimum assurance benefit of Rs.2.5 lakh is available where the deceased was a member for a continuous period of twelve months preceding death.
  3. The assurance amount is payable to the eligible family members of a deceased member.
  4. The Scheme is administered by the Employees' State Insurance Corporation under the Employees' State Insurance Act, 1948.
  • A. 1 and 2
  • B. 2 and 3
  • C. 4 only
  • D. 1 and 4

Q11. Which one of the following statements correctly describes the coverage effect of the enhanced EPFO wage ceiling?

  • A. Employees of covered establishments drawing monthly wages up to Rs.25,000 come under statutory coverage, bringing over 51 lakh additional employees within the EPFO's ambit
  • B. All workers in the country, including the self-employed and unorganised-sector workers, automatically become members of the EPFO irrespective of where or whether they are employed
  • C. Every establishment in the country, regardless of the number of persons it employs, must now register with the EPFO and enrol its entire workforce without exception
  • D. Members already drawing wages above Rs.25,000 must compulsorily exit the schemes, their entire accumulations being transferred to another pension vehicle

Q12. The Central Board of Trustees, the apex decision-making body of the EPFO, is chaired by which one of the following?

  • A. The Secretary, Ministry of Labour & Employment
  • B. The Central Provident Fund Commissioner
  • C. The Minister of State for Labour & Employment
  • D. The Union Minister for Labour & Employment