Major decision by EPFO ​​regarding PF: Provident Fund limit raised from ₹15,000 to ₹25,000..

There is welcome news for private-sector employees. The Ministry of Finance has approved raising the wage ceiling for mandatory retirement fund coverage from ₹15,000 per month to ₹25,000 per month. This limit had remained unchanged for over a decade. Once the new limit comes into effect, a larger number of salaried employees will be brought under the ambit of mandatory Provident Fund and pension coverage. The effective date for the new wage ceiling will be decided following Cabinet approval.

Currently, only employees with a basic salary of up to ₹15,000 per month are mandatorily covered under the Employees' Provident Fund and Employees' Pension Scheme. Employees earning above this threshold can remain outside the scheme, and it is not legally mandatory for employers to enroll them. Once the limit is raised to ₹25,000, employees earning between ₹15,000 and ₹25,000 per month will also be included. This change is expected to significantly expand social security coverage for private-sector employees.

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