Good news for millions of workers in the country. The Employees’ Provident Fund Organisation (EPFO) is planning to increase the salary limit for compulsory membership from ₹15,000 to ₹25,000. This means that employees with higher salaries will now get social security benefits under the EPF and EPS schemes. According to Labour Ministry sources, the proposal may be discussed in the EPFO board meeting in December or January, where final approval is expected.
Over 1 Crore Employees to Benefit
So far, employees with a basic salary of more than ₹15,000 could choose to stay out of the EPFO scheme since employers were not legally required to include them. After the increase in the salary limit, around 1 crore new employees will be covered under the scheme.
A Labour Ministry official said this move will strengthen social security and give provident fund benefits to mid-skilled workers. Many trade unions have been demanding this increase for a long time, as most employees in metro cities now earn more than ₹15,000 per month.
Pension and PF Fund to Grow with Higher Salary Limit
Both the employee and the employer contribute 12 percent each to the EPF and EPS schemes. The employee’s full 12 percent goes to EPF, while the employer’s share is divided — 8.33 percent goes to EPS and 3.67 percent to EPF.
Officials said that with the increase in the salary limit, the total fund of EPF and EPS will grow quickly. This will increase both the retirement pension and the interest earned by employees. At present, EPFO’s total fund is about ₹26 lakh crore, and it has 7.6 crore active members.
Experts Call It a Step Toward Financial Security
Financial experts called this move positive and practical. They said the higher salary limit will give more workers financial safety and make the pay structure simple. Some experts think that low and middle-income workers, who want more take-home pay, may not like this change. Still, this decision will help workers build long-term savings and get better pension security.