The Employees’ Provident Fund Organisation (EPFO) could soon witness one of its most significant reforms in a decade, with the government actively considering a proposal to raise the EPFO salary ceiling hike proposal from the current ₹15,000 per month to ₹25,000. If approved, this change in the EPF eligibility limit 25,000 update could bring more than one crore additional workers into the EPF and EPS social-security net. The last increase came in 2014, when the cap was revised from ₹6,500 to ₹15,000.
Under the existing rules, employees earning up to ₹15,000 in basic salary must be enrolled under EPFO schemes, while those who earn above this amount can be exempted at the employer’s discretion. This has led to a large section of private-sector employees being left out of structured retirement planning, a gap the EPF eligibility limit 25,000 update aims to address.
Speaking at an event in Mumbai, M Nagaraju, Secretary of the Department of Financial Services, called the current situation a “serious concern”. He explained that workers earning only slightly above the existing cap often miss out on pension protection and are vulnerable in old age. He also emphasised the importance of updating decades-old rules to reflect modern wage levels and the rising cost of living. His remarks strengthen the argument for a broader EPS pension coverage expansion.
A report by Business Today notes that once the EPFO formally tables the revised proposal, the Central Board of Trustees may evaluate the matter early next year. Preliminary assessments by the Labour Ministry suggest that raising the ceiling by ₹10,000 could bring over one crore additional workers under EPFO schemes—potentially making this a landmark EPFO reform India 2025.
Employee unions have long been pushing for an upward revision, pointing out that the current ₹15,000 limit is outdated and does not match inflation or today’s salary structures. Retirement planners agree, noting that many Indian workers still lack reliable long-term savings avenues. Experts say a higher EPF limit would naturally pull more employees into formal social security, reinforcing the significance of this EPFO salary ceiling hike proposal.
If implemented, the move would mean higher monthly contributions for employees and employers. Both currently contribute 12% of the basic salary toward EPF accounts. With the new ceiling, the contribution amount would rise, allowing employees to accumulate a larger retirement corpus and potentially receive higher pensions in the future. However, employers too would face increased costs—an important factor in the EPF contribution rules India framework.
The EPFO today manages approximately ₹26 lakh crore in assets and has nearly 7.6 crore active members. Expanding the salary threshold to ₹25,000 could significantly widen EPFO’s coverage and is being viewed as one of the most impactful social-security reforms of the decade. If approved, the proposal could strengthen financial security for millions of Indian workers and reshape retirement planning across the workforce.