Archive · 9 Dec 2025
Government Considers Raising EPF Wage Ceiling to Rs 30,000
The government is thinking about raising the salary limit for mandatory Employees' Provident Fund (EPF) contributions from Rs 15,000 to Rs 30,000 per month.
This change has been discussed in Parliament, and the Labour Ministry says they are considering it.
Currently, only employees earning up to Rs 15,000 are required to contribute to EPF, which helps them save for retirement.
Many workers and unions want this limit to be increased because salaries have gone up, and the current limit is too low.
If the limit is raised, more workers will be able to save for their future.
The government is also thinking about including gig workers in social security benefits.
This change could help a lot of people have a better retirement.
The new labour codes will also change how salaries are structured, making basic pay and allowances more important for calculating benefits like PF and gratuity.
This might mean a smaller take-home pay, but it could lead to better retirement savings in the long run.
The government is considering raising the EPF wage ceiling from Rs 15,000 to Rs 30,000 per month.
The current ceiling has not been revised since 2014, when it was increased from Rs 6,500 to Rs 15,000.
Labour unions and employee representative bodies argue that the current limit is outdated and excludes many workers from formal retirement benefits.
The government has acknowledged that private-sector employees earning slightly above Rs 15,000 are not enrolled in any pension scheme.
Raising the limit could bring over 1 crore additional workers into mandatory EPF and pension coverage.
- Who
- Employees in the organised private sector and Labour and Employment Minister Mansukh Mandaviya
- What
- Potential increase in the EPF wage ceiling from Rs 15,000 to Rs 30,000
- When
- The issue was discussed in Parliament on December 1, 2025
- Where
- India
- Why
- To bring more workers under formal retirement benefits and address rising living costs and salary levels
- Current EPF Wage Ceiling
- Rs 15,000 per month
- Proposed EPF Wage Ceiling
- Rs 30,000 per month
- Last Revision
- 2014 (from Rs 6,500 to Rs 15,000)
- Potential Impact
- Over 1 crore additional workers could be covered
- EPF Contribution
- 12% of employee's salary and 12% from employer
- Employer Contribution Split
- 8.33% to EPS, 3.67% to EPF
- Atal Pension Yojana Subscribers
- 8.3 crore (nearly half women)
Sources
EPFO update: Govt to hike wage ceiling to Rs 30,000 for mandatory EPF contribution? Here’s what Labour Ministry says
EPF Salary Cap Set For A Major Overhaul After 10 Years, Will The Limit Finally Rise Beyond ₹15,000?- Details Inside
