September 21, 2026: The government has increased the salary limit for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from ₹15,000 to ₹25,000 per month.
The change is considered effective from September 17 and is expected to bring more than 51 lakh new employees under mandatory EPFO coverage.
The new limit is particularly relevant for employees earning between ₹15,000 and ₹25,000 per month.
What Changes for Employees Earning ₹20,000?
Suppose an employee has a basic salary of ₹20,000 per month and joins an EPFO-covered company for the first time.
Under the earlier ₹15,000 salary limit, the employee was outside mandatory EPF coverage. With the new ₹25,000 limit, such an employee can come under mandatory EPFO coverage, subject to the applicable rules.
This can provide access to benefits such as retirement savings through EPF, pension under the Employees’ Pension Scheme (EPS) and insurance cover under the Employees’ Deposit Linked Insurance (EDLI) scheme, provided the relevant conditions are met.
What About Employees Earning ₹10,000?
Employees earning ₹10,000 per month will not see any new impact from this decision.
Employees earning below ₹15,000 were already covered under the applicable EPFO rules. Therefore, the increase in the salary limit does not create a new change for this category.
How Can PF Deduction Change?
The revised limit can also affect existing higher-paid PF members if contributions are made on the statutory wage ceiling.
Earlier, the maximum employee contribution under the ₹15,000 limit was 12% of ₹15,000, or ₹1,800 per month.
With the new ₹25,000 limit, the contribution could increase to 12% of ₹25,000, or ₹3,000 per month.
This means an employee could see up to ₹1,200 more deducted from salary every month, potentially reducing the take-home salary by the same amount.
EPFO Salary Limit Changed After 12 Years
The ₹15,000 salary limit was fixed in September 2014 and remained unchanged for nearly 12 years.
During this period, salaries increased and minimum wages also rose in several states. According to the government, the average regular salaried employee now earns around ₹23,000 per month.
The government has therefore increased the mandatory coverage limit to ₹25,000, citing changing economic and wage conditions.
The expansion is expected to bring more than 51 lakh additional employees under mandatory EPFO coverage.
The government estimates that the expansion will involve an annual expenditure of around ₹11,339 crore.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.