Govt Raises EPF Wage Ceiling to Rs 25,000 per month

Govt Raises EPF Wage Ceiling from Rs 15,000 to Rs 25,000 per month.

Govt Raises EPF Wage Ceiling to Rs 25,000 per month: The central government has increased the wage ceiling limit of Employees Provident Fund (EPF) from ₹15,000 to ₹25,000 per month. The move is expected to bring more than 51 lakh additional employees under mandatory EPFO coverage, expanding the social security net for workers, according to the ministry of labour and employment.

Addressing the media after the Cabinet meeting on Wednesday, Union Minister Ashwini Vaishnav said that this rule will be implemented from September 17, 2026. About 51 lakh employees will get direct benefit from this move of the government. With this new decision, more contributions will be added to the PF and pension accounts of the employees every month, thereby strengthening their retirement funds. The government will incur an additional expenditure of ₹11,339 crore to implement the scheme.

After this increase in salary limit, now employees with basic salary up to ₹25,000 will come under PF ambit of mandatory EPFO coverage. Although there may be a slight change in the salary of the employees due to increase in PF deductions, their future will be more secure in the long run. Earlier in 2014, it was increased from ₹6,500 to ₹15,000.

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