# EPFO raises salary limit for mandatory coverage to Rs 25,000 2026-09-22T01:02:05+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet The government has raised the salary threshold for mandatory EPFO coverage from Rs 15,000 to Rs 25,000 per month. The new rule took effect on 17 September and is expected to bring over 51 lakh new employees under the retirement savings scheme. Workers earning between Rs 15,000 and Rs 25,000 who join a covered establishment for the first time now automatically qualify for Provident Fund, pension under EPS, and EDLI insurance cover. For employees whose PF deduction was already based on the statutory salary limit, the monthly contribution can rise from a maximum of Rs 1,800 to Rs 3,000, meaning an increase of up to Rs 1,200 per month. This will reduce take-home pay but increase the PF account balance. Workers earning Rs 10,000 or less see no change as they were already covered under the old Rs 15,000 limit. The finance ministry will watch compliance data in the coming months to assess the actual uptake. ## Indian Opinion Analysis The change effectively reverses the 2014 threshold revision that had frozen many low-wage workers out of mandatory social security. Under the RBI's latest financial inclusion data, nearly 60% of India's formal workforce still lacks pension coverage. The EPFO's own actuarial reports have warned that the pension scheme needs a wider contribution base to remain solvent. The immediate impact for workers earning above the old 15,000 rupee cap but below 25,000 rupees is a compulsory reduction in take-home pay in exchange for long-term retirement savings. Establishments with high churn in this salary band may see compliance costs rise. The next practical test will be how many employers file the new wage returns by the monthly 15th deadline, which will reveal whether the expanded coverage is being enforced or contested. ## Coverage - bazaar.businesstoday.in Tags: EDLI, Employees’ Pension Scheme, EPFO, Ministry of Labour and Employment Canonical: https://indianopinion.org/epfo-raises-salary-limit-for-mandatory-coverage-to-rs-25000/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/epfo-raises-salary-limit-for-mandatory-coverage-to-rs-25000/#story-in-brief