EPFO Update – The central government is considering increasing the minimum basic salary for private employees for EPFO contributions from ₹15,000. It is believed that the government may directly increase the minimum basic salary from ₹15,000 to ₹30,000. Many companies calculate EPF contributions based on actual basic salaries.
Also, some offer their employees the option to contribute ₹15,000. This option reduces an employee’s retirement savings through EPF. It provides greater benefits on in-hand salary. It can be used as needed. Furthermore, Union Minister of Labour and Employment, Dr Mansukh Mandaviya, responded to important questions in the Lok Sabha on Monday, December 1, 2025. You can read what he said below.
Union Minister Responds in Lok Sabha
On the first day of the Lok Sabha Winter Session, Union Labour and Employment Minister Dr Mansukh Mandaviya responded to a plan to increase the minimum salary limit for EPFO contributions from ₹15,000 to ₹30,000. He stated that no such plan has been approved yet.
He stated that increasing the salary limit for coverage under the EPFO is done after extensive consultation with stakeholders, including trade unions and industry associations. This will impact the take-home salary for employees and the hiring costs for companies.
Mandaviya also stated this in a written response to a question. He was asked whether the government plans to increase the minimum salary limit for enrollment under the EPF to ₹30,000. If so, what are the details? There has been no official confirmation of the plan to increase the minimum salary limit from ₹15,000 to ₹30,000.
Discussions of a minimum salary increase have been circulating for some time.
There have been strong rumours about increasing the minimum basic salary for EPFO contributions from ₹15,000 to ₹30,000. But now these claims have become mere rumours. Meaning, there seems to be no truth to these claims at all. The Union Minister has categorically denied any such information. If this limit were increased, employees would certainly benefit.
