EPF Update 2025: Is the Government Planning to Raise the PF Salary Limit to ₹30,000?
No, the EPF salary limit will not be increased to ₹30,000 immediately. The current statutory wage ceiling remains ₹15,000 per month for mandatory EPF contributions, with no confirmed hike as of December 2025.
Current EPF Salary Limit
The EPF salary limit is ₹15,000, meaning mandatory contributions apply only for monthly wages up to this threshold currently.
Proposed EPF Salary Limit Increase
Discussions are ongoing to raise the EPF wage ceiling from ₹15,000 to potentially ₹25,000-₹30,000, but no final decision has been made.
Government's Position on Limit Hike
The government requires thorough consultations with unions and industry due to its impact on take-home pay and labour costs.
Trade Unions Demand Higher Limit
Trade unions advocate for increasing the limit to ₹30,000 to widen coverage amidst growing inflation and rising living costs.
Benefits of Increasing the Wage Cap
Raising the limit would increase the PF corpus and retirement benefits for more employees, enhancing social security protection nationwide.
Challenges and Impact on Employers
Higher wage limit hikes employer contribution costs, potentially affecting hiring decisions and employee take-home salaries in the short term.
