Stocks● Neutral
EPFO wage ceiling likely raised to ₹25,000; cabinet approval awaited
India's finance ministry has approved raising the EPFO wage ceiling to ₹25,000 from ₹15,000, sources said, pending cabinet approval for implementation by April 2027.
Continue with
The finance ministry has approved a raise in the wage ceiling for mandatory retirement fund coverage to ₹25,000 a month, up from the current ₹15,000, people familiar with the matter told Moneycontrol.
The limit has not been changed since September 2014 – nearly 12 years. The move would expand coverage of the Employees' Provident Fund Organisation's (EPFO) pension and provident fund schemes to more salaried workers, the sources said.
A date for implementation will be set once the Union Cabinet approves the decision, they added. Livemint could not independently verify the report.
At present, workers earning up to ₹15,000 in basic pay per month are covered under the employees' provident fund (EPF) and employees' pension scheme (EPS). Raising the ceiling to ₹25,000 would bring more companies under compliance rules.