Finance Ministry raises EPF and EPS limit to ₹25,000 monthly
Big update: The Finance Ministry is raising the salary limit for mandatory Employee Provident Fund (EPF) and Employee Pension Scheme (EPS) coverage from ₹15,000 to ₹25,000 per month.
This means more private sector employees (especially younger folks starting out) will get access to these social security perks.
The old limit has been around since 2014, so this change is a pretty welcome shift.
Large firms with 20+ employees affected
If your basic pay falls between ₹15,000 and ₹25,000, you'll now be covered under EPF and EPS.
While this will bring in a lot more people as beneficiaries, it also means higher compliance costs for employers and the government.
Employers chip in 8.33% of your basic pay toward the pension fund; the government adds another 1.16%.
These changes mainly impact bigger companies with 20 or more employees. Smaller firms are off the hook unless they sign up voluntarily.
The rollout is expected by April 1, 2027, so businesses have some time to sort out their payroll systems once Cabinet approval comes through.