New Delhi: The Employees Provident Fund Organisation (EPFO) is gearing up for a big change that could help more than 10 million workers across India. Word is, the Central Board of Trustees will meet in December 2025 or January 2026 to talk about raising the salary cap for EPF and EPS eligibility.
Right now, only employees who earn up to Rs 15,000 a month have to be covered under the Employees Provident Fund (EPF) and Employees Pension Scheme (EPS). The new plan wants to bump that limit up to Rs 25,000, which would be the first update since 2014.
Once this goes through, a much bigger slice of India’s workforce will get EPF and EPS benefits. That means more people with retirement and pension security—something millions miss out on today.
Here’s how the current system works. Both the employee and the employer pay in 12 percent of the employee’s monthly salary to the Provident Fund. The employer’s share gets split: 3.67 percent goes to EPF, and 8.33 percent is set aside for the EPS.
Anyone earning more than Rs 15,000 a month right now can choose to skip EPF coverage, which shrinks the pool of people getting social security.
Raising the cap to Rs 25,000 would pull a lot of these folks back into the PF system. That means more contributors, a stronger safety net, and a healthier fund overall.
EPFO is already managing a massive Rs 26 lakh crore fund, with 7.6 crore active members nationwide. Experts like the idea—they see it as a smart move to boost financial inclusion and give workers more stability, especially as the economy keeps shifting.
Labour Ministry officials say this change is overdue. Salaries have gone up, inflation keeps climbing, and the old rules just don’t fit today’s reality. The new limit would help more formal-sector workers get the post-retirement protection they need.
If it happens, this will be the biggest shake-up to EPFO rules in over ten years. It’s about time the provident fund kept pace with India’s changing jobs and wages.
