The Finance Ministry has approved a proposal to increase the salary limit required under EPF from the current Rs 15,000 to Rs 25,000 per month. Initially, the plan was to increase the limit to Rs 30,000. However, the Rs 25,000 limit has been approved for now. The new change has not yet been officially implemented; final approval from the Union Cabinet is required for its full implementation. The primary objective of this major decision is to bring more employees under the ambit of EPF and pension schemes.

According to the current EPFO ​​rules, till now, it was mandatory for employees with a basic salary of up to Rs 15,000 to contribute to their PF account, whereas this rule was optional for those with a basic salary above this limit. 

Finance Ministry approved

Following the Finance Ministry's approval, the proposal now awaits final approval from the Union Cabinet. Once approved by the Cabinet, it will be implemented immediately. The government will provide companies with a transition period to change their payroll systems and compliance processes.

The new EPF salary will be applicable from April 1, 2027

According to reports, the new EPF salary limit could come into effect from April 1, 2027. The increase in salary limits will also increase contributions to PF and pension funds, which will impact both companies and the government.

Which employee will benefit?

It is beneficial for employees working in organized private sector companies with 20 or more employees. Small organizations with fewer than 20 employees can opt to join the EPFO, but it is not mandatory. Central government employees are covered under a separate pension system.

1816 crore fraud in EPFO

The Employees' Provident Fund (PF) body EPFO ​​has taken major action against industrialist Anil Ambani and his Reliance Capital company. The Central Bureau of Investigation (CBI) has filed an FIR against Reliance Capital Limited, its former chairman Anil Ambani, as well as several unidentified government officials and others in connection with an alleged Rs 1,816 crore scam (EPFO scam case).

PC: Rochak Khabre