A major change in Provident Fund (PF) rules may be on the way, potentially benefiting lakhs of salaried employees across the country. The government is considering a proposal to increase the PF salary limit from the current ₹15,000 to ₹25,000 per month, which would bring more workers under the Employees’ Provident Fund Organisation (EPFO) and Employees’ Pension Scheme (EPS).

At present, it is mandatory for employees earning a basic salary of up to ₹15,000 to be enrolled in PF and EPS. If the proposed hike is approved, employees with salaries up to ₹25,000 would also be required to join the scheme.

First revision since 2014

If implemented, this would be the first increase in the PF salary threshold in over a decade, as the current limit has remained unchanged since 2014. According to reports, the revised limit could come into effect from April 1, 2026.

Why the government is considering this change

The primary objective of the proposal is to expand social security coverage. Over the years, wages in many sectors have increased significantly, but the PF salary cap has not kept pace. As a result, a large number of workers remain outside the PF and pension system, missing out on retirement and social security benefits.

To address this issue, the Supreme Court has also directed the EPFO and the central government to take a decision on revising the PF wage limit within a stipulated time frame, accelerating the policy review process.

When will a final decision be taken?

The proposal is expected to be discussed at an upcoming meeting of the EPFO Central Board of Trustees (CBT), likely to be held next month. If approved by the board, the revised salary limit could be implemented in the 2026–27 financial year.

Impact on employees and employers

If the PF salary ceiling is raised to ₹25,000:

• More employees will be mandatorily covered under PF and EPS

• Workers will benefit from higher retirement savings and pension security

• PF contributions will increase, strengthening the overall EPFO corpus

A step towards wider social security

The government views this proposal as a significant expansion of India’s social security framework. By raising the PF and pension salary limit, a larger section of the workforce would gain access to long-term savings and retirement benefits.