Mumbai: Millions of employees in India’s organised private sector want the government to increase the salary limit for mandatory EPF (Employees’ Provident Fund) coverage. Right now, only workers earning up to Rs 15,000 a month must be covered under EPF.
This rule leaves many mid-level earners outside formal retirement savings, even though living costs and salaries have increased sharply.
The issue recently came up in Parliament, bringing renewed focus on the need for an update.
Why the Old Rs 15,000 Cap Is Being Questioned?
The last time the EPF wage ceiling was changed was in 2014, when it rose from Rs 6,500 to Rs 15,000.
Since then, salaries-especially in urban India-have grown much faster, but the cap has stayed the same.
On December 1, 2025, MPs Benny Behanan and Dean Kuriakose asked the government whether it was planning to raise the limit to Rs 30,000 and whether gig workers could be included under EPF.
Government’s Stand: Consultations Needed
Labour and Employment Minister Mansukh Mandaviya clarified that any change in the ceiling must go through discussions with unions and industry groups, as it affects both workers take-home pay and companies hiring costs.
He also said gig workers are already recognised under the Code on Social Security, 2020, which offers benefits like health cover, accident insurance, maternity assistance and old-age protection through a Social Security Fund.
Possible Increase on the Table
Under current rules, workers earning more than Rs 15,000 can skip EPF altogether, meaning many employees do not automatically save for retirement.
Labour unions say raising the limit to Rs 30,000 will help millions keep up with rising expenses.
According to government sources, the EPFO may discuss increasing the limit to Rs 25,000 in the next Central Board of Trustees (CBT) meeting.
If approved, this could bring one crore more employees under mandatory EPF.
How a Higher Cap Will Affect Savings?
Both the employee and employer contribute 12 percent of the salary to EPF.
From the employer’s share, 8.33 percent goes to the pension scheme and 3.67 percent to the EPF account.
If the wage ceiling rises, these contributions will also rise, providing bigger retirement savings and higher pensions for workers.
What Lies Ahead
There is no official announcement yet, but the government’s reply shows it is open to revising the limit. Employees earning between Rs 15,000 and Rs 30,000 are now waiting for upcoming meetings and consultations, hoping for better retirement security.
