New Delhi: Big news for India’s salaried class: The Employees’ Provident Fund Organisation (EPFO) is mulling a game-changing hike in the salary ceiling for mandatory PF and pension contributions — from ₹15,000 to a whopping ₹25,000 per month!
This could rope in over one crore workers into the safety net of social security.
Sources reveal the Labour Ministry’s internal assessment predicts this ₹10,000 jump will make EPF and EPS compulsory for 10 million-plus earners, many low-to-mid-skilled hands in bustling metros outpacing the old limit. “Unions have long pushed for this,” an official said, as EPFO’s Central Board of Trustees eyes approval in its December-January meeting.
Under current rules, both employee and employer chip in 12% of basic salary. The employee’s share parks fully in EPF; the employer’s splits into 3.67% EPF and 8.33% EPS. Post-hike, expect a surge in EPFO’s ₹26-lakh-crore corpus (7.6 crore active members), fuelling fatter pensions and interest surpluses.
Experts hail it as a “progressive leap”, aligning coverage with rising wages amid economic flux. For now, those above ₹15,000 can opt out — but soon, ₹25,000 earners might see deductions kick in automatically. Will this bolster retirement dreams or pinch pockets? Salaried India watches keenly.