New Delhi. A day before Vishwakarma Jayanti, the Narendra Modi government at the Center has made a big announcement for the private sector employees across the country. The government has approved increasing the monthly salary limit of the existing Provident Fund (PF) coverage of employees from Rs 15,000 to Rs 25,000. Under the new rule, if the basic salary and DA of an employee is Rs 25,000 or less, then it will be mandatory for his employer to include him in the ambit of EPF and every employee will be able to get the benefit of PF.
Union Minister Ashwini Vaishnav gave information regarding this decision taken in the Modi cabinet. This will benefit about 51 lakh employees, especially those whose salary is between Rs 15,000 to Rs 25,000 and now they will come under the ambit of the changed rules of PF. Due to this, the estimated annual expenditure of the Government of India will be Rs 11,339 crore. In the contribution made in PF, one part is from the employee, one part from the employer and one part from the government. The money given by the government is added to the EPFO of the employees. With this, more private sector employees will come under the ambit of PF and they will be able to get its benefits. The salary limit of Rs 15000 was fixed in September 2014 and it has been changed in September 2026. Now the salary ceiling for PF has been increased to Rs 25,000 per month.
With this decision of the government, now more employees will be able to take advantage of regular savings under Provident Fund (EPF). Now more employees will also be able to come under the ambit of pension security benefits after retirement through the Employee Pension Scheme (EPS). Along with this, employees will also get insurance protection under the Employee Deposit-Linked Insurance Scheme (EDLI). However, if those employees whose basic salary and DA are more than Rs 25,000 and are not already members of EPF, then they will have the option to take it or not.