EPFO May Raise Wage Ceiling to Rs 25,000 for Mandatory PF Coverage: 1 Cr More Employees To Get EPF Benefits?

The Employees' Provident Fund Organisation (EPFO) is reportedly considering raising the wage ceiling to Rs 25,000 for the mandatory inclusion of workers under the Employees' Provident Fund (EPF) and Employees' Pension Scheme (EPS), according to a report by Moneycontrol quoting government sources.

EPFO May Hike Minimum Wage Ceiling to Rs 25,000 for Mandatory Provident Fund Coverage: Report

As per Moneycontrol report, the Central Board of Trustees (CBT) of the EPFO, the highest decision-making body of the organisation is likely to take up the proposal for discussion in its upcoming meeting, expected to be held in December 2025 or January 2026. A final approval for the revised wage ceiling could be given during this meeting, according to the official cited by the news portal.

Who Will Benefit from the Proposed Rs 25,000 EPFO Wage Ceiling Hike?

If implemented, the move is expected to benefit around 10 million additional employees. An internal assessment by the Ministry of Labour and Employment reportedly found that increasing the wage ceiling by Rs 10,000 from the current Rs 15,000 to Rs 25,000 per month, would make social security benefits mandatory for more than 1 crore additional workers in India.

Currently, under existing EPFO rules, employees earning a basic salary of Rs 15,000 or less per month are mandatorily covered under the EPF and EPS schemes. Both the employer and the employee contribute 12% of the basic salary each towards the provident fund.

However, for employees earning more than Rs 15,000 per month, participation in EPF is optional and employers are not obligated to make contributions for them unless both parties agree.

"The labour unions have been seeking a raise (on wage limit) for a long time as monthly salaries of several low or mid-skilled workers in many metro cities are more than 15,000 per month. A higher ceiling would make them part of EPFO," cited Moneycontrol.

Officials noted that many employees in metro cities draw basic salaries exceeding Rs 15,000, which currently excludes them from automatic EPFO coverage. "The labour unions have been demanding an increase in the wage ceiling for a long time since the monthly salaries of many low- or mid-skilled workers in metro areas now exceed Rs 15,000. A higher limit would ensure more workers are covered under EPFO's social security benefits," the report quoted a senior official as saying.

The above information is based on a news report and official sources quoted therein. Goodreturns has not independently verified the details or the claims mentioned in the report.

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