Archive · 3 Aug 2026
India Expands EPF Coverage to ₹25,000 Salary Ceiling
The Employees’ Provident Fund (EPF) is a retirement savings plan for workers in India.
Right now, only people who earn up to ₹15,000 a month are automatically enrolled.
The government wants to change that so people who earn between ₹15,000 and ₹25,000 will also be enrolled.
This means employers will have to pay extra into the plan for more workers.
The government will also pay a small share of the pension fund.
The change will cost the government more money, but it will help more people save for retirement.
The new rule will start on April 1, 2027, after the cabinet approves it.
It will apply to companies with 20 or more employees.
Small firms can still choose to join voluntarily.
EPF wage ceiling hike to ₹25,000 will bring millions under pension net.
Currently mandatory only for workers earning up to ₹15,000; new rule covers ₹15k‑₹25k.
Employers must contribute 8.33% of basic salary; central government 1.16%.
Expansion will increase government outlay; ₹11,144 crore allocated for 2026‑27.
Effective from April 1, 2027, for firms with 20 or more workers after cabinet clearance.
- Who
- Employees earning a basic monthly salary between ₹15,000 and ₹25,000 in the private sector
- What
- Mandatory enrollment in the Employees’ Provident Fund and Employees’ Pension Scheme
- When
- Effective from April 1, 2027, after cabinet clearance
- Where
- Private sector establishments in India with 20 or more workers
- Why
- To extend pension benefits to more workers and strengthen the social security net
- Wage ceiling for mandatory EPF
- ₹25,000
- Effective date
- April 1, 2027
- Employer contribution rate
- 8.33% of basic salary
- Central government contribution rate
- 1.16% of basic salary
- Budget allocation 2026-27
- ₹11,144 crore