Archive · 20 Nov 2025
EPFO Set to Boost Retirement Security: Rs 15,000 Cap Hike Proposed
The government is thinking about raising the limit for how much money workers earn before they have to save for their retirement.
This could help more people save more for when they're older.
EPFO considering increasing wage ceiling for mandatory EPF & EPS contribution from Rs 15,000 to Rs 25,000
Move aims to expand pension coverage, strengthen retirement security for millions of workers
Last EPF ceiling revision was in 2014, from Rs 6,500 to Rs 15,000
Proposed change expected to bring over 1 crore additional workers under mandatory EPF & EPS coverage
Higher ceiling to increase EPF & EPS contributions, boosting retirement savings and pension payouts
- Who
- EPFO (Employees' Provident Fund Organisation)
- What
- Proposing to increase wage ceiling for mandatory EPF & EPS contribution
- When
- Proposal expected to be discussed in the next EPFO CBT meeting, early next year
- Where
- India
- Why
- To expand pension coverage, strengthen retirement security, and improve social protection for workers
Labour Unions
Employers
Mandatory Coverage
Labour Unions
Unions argue for mandatory coverage up to higher wage levels to ensure better retirement savings and pension benefits for all workers.
Employers
Employers may prefer voluntary enrollment to avoid increased costs and administrative burden.
- Current EPF wage ceiling
- Rs 15,000 per month
- Proposed new EPF wage ceiling
- Rs 25,000 per month
- Estimated additional workers under coverage
- Over 1 crore
- EPF contribution rate (employee)
- 12% of salary
- EPF contribution rate (employer)
- 12% of salary (8.33% to EPS, 3.67% to EPF)
