If any member of your family is employed and their PF is deducted, this news is very important for you.

According to reports, the current EPFO ​​salary limit, which is currently Rs 15,000 per month, could be increased to Rs 25,000.

This simply means that the salary threshold for PF deductions will be increased by ₹10,000. If the government approves this proposal, millions of private sector employees will directly benefit. This will not only strengthen their social security but also significantly increase their retirement benefits.

Why is this limit being increased?

According to current rules, employees with a basic salary of ₹15,000 or less are required to join the PF scheme. Employees earning more than this amount can opt out or opt out of the PF deduction at will. The government believes this limit has remained unchanged since 2014, despite inflation and significant increases in the minimum wage. Following Supreme Court directives and long-standing demands from employee unions, the government is now considering bringing this limit closer to reality so that more employees can be covered under social security.

When can the new limit be implemented?

According to sources, the new salary limit for PF deductions could be implemented from April 1, 2026, the first day of the new financial year. It is expected that the proposal will be finalized at the next meeting of the EPFO's Central Board of Trustees. If this happens, it will be the biggest and most historic change in the last decade.

How will the change affect your pocket?

The implementation of this decision will most affect those employees whose salary is between Rs 15,000 to Rs 25,000.

• Increase in savings: Your PF deduction will now be on a higher basic salary, which will increase the amount deposited in your fund every month.
• Higher pension: Since the contribution to EPS (Pension Scheme) is also fixed at this limit, your pension amount in future will also be much higher than before.
• Reduction in in-hand salary: A small downside is that your monthly take-home salary may be slightly less as the PF portion will be deducted more.

 Advantages and challenges

This move will help millions of employees build a substantial fund for their old age. Provident Fund corpus will be strengthened, enhancing employees' financial security. However, this also poses some challenges. Employees' immediate disposable income will decrease, which may cause some initial discomfort. Furthermore, companies will also face increased financial burdens, requiring them to increase their employee contributions to the pension fund.

Overall, this change can prove to be a great move for long-term investment and a secure future.