EPFO New Rule 2026: The government is preparing to take a significant step towards strengthening the social security of salaried employees. Under this, serious consideration is being given to increasing the prescribed salary limit for mandatory provident fund (PF) deductions in the Employees’ Provident Fund Organisation (EPFO). Currently, this limit is Rs. 15,000 per month, which may be increased to Rs. 25,000 per month.
This change aims to bring more and more employees under the ambit of retirement benefits like PF and pension. If the proposal is approved, millions of new employees will join the social security system.
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The rule may be implemented from April 1st
According to reports, this proposal is under discussion at the highest levels of the government and may be presented at the next meeting of the EPFO’s Central Board of Trustees (CBT) next month. If approved, this new rule could be implemented from April 1st.
It is noteworthy that preparations are underway to change the salary limit after about 12 years. The current limit of Rs. 15,000 has been in effect since 2014, while inflation and employees’ salaries have increased significantly during this period.
Reconsideration of the salary limit
A major reason for advancing this proposal is a recent directive from the Supreme Court. The court has asked the EPFO to reconsider the salary limit in view of rising salaries and inflation, as many employees have been excluded from social security benefits due to the current limit.
If the salary limit is increased to Rs. 25,000, PF deductions will become mandatory for all employees earning up to this amount. This will increase the amount deposited every month in the EPFO and the Employees’ Pension Scheme (EPS), and the fund’s position will become stronger.
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However, this will also affect employees’ take-home salary. Increased PF deductions will mean slightly less money in hand, but in return, they will benefit from greater retirement savings and a better pension in the future.
Impact on employers and companies
This will also have an impact on employers, i.e., companies. They will have to contribute more for their employees, which will increase their costs. Along with this, the pressure of compliance with regulations may also increase.
Experts believe that the labor codes have already increased companies’ expenses. In this situation, raising the EPF wage limit will put additional pressure on them, but in the long run, this step will prove helpful in strengthening the social security of employees.
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Adarsh P
Adarsh Pal is a content writer at Timesbull Media. He specializes in writing news related to industry updates, the automotive sector, banking, telecommunications, the travel sector, and personal finance. Adarsh has previously worked with several digital media channels. He is skilled at presenting news accurately and disseminating information based on...
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