The Employees’ Provident Fund Organisation (EPFO) has lifted its wage ceiling to ₹25,000 a month, a move that marks the first increase in more than a decade. The change is expected to affect the calculation of both employee and employer contributions to the pension scheme.
Under the revised framework, employees may be required to contribute up to ₹2,082.50 each month, while employers will see an additional ₹600 added to their share. These figures represent a noticeable rise from the previous limits.
The Department of Labour has projected that the hike could attract between 51 lakh and one crore new members to the EPFO, expanding the pension coverage for a significant portion of the workforce across the country.
The decision aligns with the government's broader goal of enhancing retirement security for workers, and it follows a period of stagnant contribution ceilings that had remained unchanged since 2011.
