Major Change Proposed in EPFO: Salary Limit May Increase from ₹15,000 to ₹25,000, Benefiting 1 Crore Workers!

New Delhi (The Uttam Hindu): A major update linked to the Employees’ Provident Fund Organisation (EPFO) has emerged. According to recent reports, the organisation is considering a significant change in the eligibility criteria for mandatory PF and pension contributions. In simple terms, EPFO is preparing a proposal to increase the current salary limit from ₹15,000 to ₹25,000. Earlier, this limit used to be ₹6,500. The move aims to bring more than one crore additional employees under the social security net, including Provident Fund and pension benefits.

During an event held in Mumbai, M. Nagaraju, Secretary of the Department of Financial Services (DFS), said it is concerning that employees who earn slightly more than ₹15,000 per month still do not have access to pension protection and often end up relying on their families in old age. He stressed the need to update the outdated pension salary limit.

At present, only employees earning up to ₹15,000 as basic salary are automatically covered under EPF and EPS. Workers earning above this amount can opt out, and employers are not required to include them. As a result, many employees in the urban private sector are left without formal retirement savings even though their income is not very high.

Reports suggest that EPFO may raise this limit to ₹25,000, and the proposal could be discussed by the Central Board of Trustees early next year. According to the Labour Ministry, raising the limit by ₹10,000 would bring over one crore additional employees under mandatory PF and pension coverage. Several trade unions have been demanding this revision for a long time, arguing that the current limit no longer matches today’s inflation and salary levels.