As part of a significant initiative to broaden the spectrum of social security, the Employees’ Provident Fund Organisation (EPFO) is raising the cap on wages liable for mandatory EPF deductions from ₹15,000 to ₹25,000 per month. This transition, likely to take place in early 2026, will open the door to the millions of private sector employees whose salaries never permitted them to avail of the scheme.
What Is the EPF Salary Limit?
The EPF salary limit is the criteria for employees included in a compulsory manner under the Provident Fund and Pension schemes. Before now, enrollments were done automatically only for people whose basic monthly salary did not exceed ₹15,000. The employees whose monthly salaries were above this limit could not avail the benefits then. The newly set limit of ₹25,000 will encompass many more employees in the retirement benefit scheme.
Who Will Benefit?
This revision will be applicable to:
- Those private sector workers whose salary range is between ₹15,000 and ₹25,000/month
- Workers located in metropolitan areas and Tier-1 towns
- Employees working in small and medium enterprises (SMEs)
Increased savings and pension eligibility through EPS-95 will be aided by the fact that both employers and employees contribute to the EPF account.
EPF Salary Limit Update Summary Table
| Feature | Previous Rule | New Rule (2025–26) |
|---|---|---|
| Mandatory EPF Coverage Limit | ₹15,000/month | ₹25,000/month |
| Eligible Employees | ~4 crore | ~5 crore+ |
| Pension Scheme Inclusion | Optional above ₹15,000 | Mandatory up to ₹25,000 |
| Expected Implementation | Early 2026 | Approved by EPFO Board |
Final Thoughts
It has been a long way for the EPFO letting their hiring limit down, but this time it will be very different. The mid-income employees will no longer be without pension coverage; they will even have better planning for retirement and hence, stronger financial security. Transition period is the time to inform your HR and to check and update your EPFO details so as to get the most out of the changes that are coming.
