EPF Salary Limit Hike: The Central Government has made a major change in the mandatory salary limit for Employees’ Provident Fund (EPF). Now the salary limit for EPF coverage has been increased from ₹15,000 per month to ₹25,000. It has been informed that this change will be implemented from 17 September 2026. The government says that with this lakhs of additional employees will be able to join social security schemes.
51 lakh employees can get benefits
Under the new system, those employees can also come under the ambit of schemes like EPF, EPS and EDLI, whose basic salary was earlier not included in the mandatory coverage because it was more than ₹ 15,000. The government aims to connect more and more employees to the formal social security system.
Take-home salary may be affected
The effect of this change can also be visible on the monthly in-hand salary of the employees. Employees whose basic salary and dearness allowance are more than ₹ 15,000 but up to ₹ 25,000, may start deducting EPF contribution from their salary. This may reduce the take-home salary in some cases.
Savings in PF account will increase
However, in lieu of possible reduction in salary, more amount will be deposited in the PF account of the employees. This will strengthen future savings and one can also avail benefits of facilities like pension and insurance. The actual impact on the employee will depend on his basic salary, CTC and the salary structure of the company.
EPF limit changed after 12 years
The EPF salary limit was previously changed in September 2014, when it was increased from ₹6,500 to ₹15,000. Now after about 12 years, the limit has been increased to ₹25,000. With this decision, more employees are expected to get PF, pension and insurance protection.