Major EPFO ​​Update: Will those earning a salary of ₹25,000 get a pension? Understand the rules..

Following the change in the Employees' Provident Fund Organisation (EPFO) wage limit, salaried individuals have several questions regarding PF and pension. The government has raised the wage limit for mandatory EPF coverage from ₹15,000 to ₹25,000 per month. This change came into effect on September 17, 2026. It is expected to bring over 51 lakh additional employees under the social security net. However, it would be incorrect to equate eligibility for EPF with eligibility for the Employees' Pension Scheme (EPS).

What has changed for those earning up to ₹25,000?
The benefit of the new wage limit is available to eligible employees whose relevant wage amount previously exceeded ₹15,000, thereby excluding them from mandatory EPF coverage. Now, eligible employees earning between ₹15,000 and ₹25,000 can also be covered under this scheme.

Under EPF, both the employee and the employer make contributions. The employee's standard contribution is 12% of their basic salary and dearness allowance. A portion of the employer's contribution goes towards the Employees' Pension Scheme (EPS), while the remainder is deposited into the EPF account. However, the pension contribution depends on whether or not the employee is an eligible member of the EPS.

Will one not receive a pension if the salary exceeds ₹25,000?
No, that is not necessarily the case. If an employee's relevant wage amount exceeds ₹25,000, their existing EPS membership does not automatically cease simply because of this.

According to the EPFO's clarification, it is important to determine whether such employees were already members of the EPS. If they are already part of the pension scheme, their membership can continue despite the higher salary. On the other hand, employees joining the EPF system for the first time whose salary exceeds the prescribed limit do not automatically qualify for EPS membership based solely on their higher salary. Consequently, the rules may differ for employees changing jobs versus those starting their careers.

What if you are already in the EPF but not receiving a pension?
Some employees are EPF members but have questions regarding their pension scheme membership. New regulations include provisions to extend EPS coverage to certain EPF members—falling within the salary limit—who were previously not part of the pension scheme.

Such employees should verify their membership status, applicable rules, and employer records. Merely seeing a balance in the EPF passbook does not necessarily imply that EPS membership is also registered.

How many years of service are required for a pension?
Under standard EPS rules, a minimum of 10 years of eligible service is required to receive a monthly pension. Regular pension payments typically commence at the age of 58. Upon meeting eligibility criteria, an option for a reduced pension amount may be available as early as age 50 in certain cases.

Employees should review their UAN-linked details, EPF passbook, and EPS service records. Contact your employer or the EPFO ​​if necessary. While the increase in the salary limit has expanded the scope of social security, meeting specific membership and service conditions remains essential to avail of pension benefits.

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