PF Rules Update: Government Plans ₹10,000 Increase in Salary Limit

The Modi government is preparing for a major update to the Employees’ Provident Fund (EPF) system, one that could bring millions more workers under its social security umbrella. The proposal on the table is to raise the EPF salary cap from the long-standing ₹15,000 to ₹25,000 per month. If approved, the revised limit is expected to come into effect from April 1, 2026.

This would be the first revision of the EPF wage ceiling since 2014. For over a decade, rising salaries and higher minimum wages across states have made the existing cap increasingly outdated. As a result, a large section of salaried employees has remained outside EPF coverage despite being part of the formal workforce.

Proposal under active review

According to a report by The Economic Times, the proposal is currently under high-level examination. A senior government official confirmed that the matter will be discussed in the next meeting of the EPFO Central Board of Trustees (CBT). The process has gained momentum after the Supreme Court recently directed the EPFO to take a timely decision on revising the salary limit.

Supreme Court push speeds things up

Earlier this month, the Supreme Court asked the Centre to decide on the amendment within four months. The directive came while hearing a petition filed by social activist Naveen Prakash Nautiyal. The petition highlighted a critical gap in India’s social security framework, employees earning more than ₹15,000 per month are excluded from EPF benefits, even though their wages often exceed the notified minimum wage in many regions.

Why the current cap is a problem

Advocates for the petitioner argued that while wages and living costs have steadily risen, the EPF wage ceiling has remained frozen. This has left many salaried workers without provident fund coverage, weakening long-term financial security. The petition also pointed out that changes to the EPF wage limit over the past 70 years have been irregular, sometimes delayed by 13 to 14 years.

What this could mean for employees

If the salary cap is raised to ₹25,000, a much larger section of the workforce would gain access to EPF benefits, including retirement savings and social security protection. For employees, it could mean higher provident fund contributions today, and a stronger financial cushion tomorrow.

All eyes are now on the EPFO board’s upcoming meeting, which could set the stage for one of the most significant EPF reforms in recent years.