EPF Salary Limit: Big News! Lakhs More Employees to Come Under PF? Centre Moves to Increase Salary Limit to ₹21,000!

EPF Salary Limit: A piece of great news is on the horizon for lakhs of employees working in the private sector. The Central Government is set to increase the monthly salary ceiling for eligibility under the Employees’ Provident Fund (EPF) scheme. The current limit of ₹15,000 is planned to be raised to ₹21,000, and the proposal is in its final stages. While this has been under discussion for a long time, top sources in the Labour Ministry indicate that the government does not want any further delays. If this decision is implemented, a significantly larger number of employees will come under the umbrella of this crucial social security service.

This move by the Central Government will undoubtedly bring a revolutionary change in securing the future of private-sector employees. According to the current rules, private companies or institutions with at least 20 employees are covered by the Employees’ Provident Fund Organisation (EPFO), and employees with a salary of up to ₹15,000 are mandatorily enrolled in the EPF service.

Centre on the Path to a Final Decision

Sources from the Labour Ministry have revealed that the plan to increase the salary ceiling from ₹15,000 to ₹21,000 has been finalised at a preliminary level. However, as per regulations, this decision must be formally adopted at a meeting of the EPFO’s Central Board of Trustees. It is being reported that this tripartite meeting could be held in Delhi next month, where the official announcement will be made. The government is keen on implementing this important decision swiftly.

A New Year’s Gift Before Elections?

According to experts, there might be a political context behind this decision. Crucial assembly elections are scheduled to be held in several states, including West Bengal, early next year. Government sources explain that this announcement for private-sector employees just before the elections is being positioned as a ‘New Year’s gift’ from the Modi government. It is believed that through this step, the government will try to win the favour of a large segment of the country’s private workforce.

With the increase in the salary ceiling, it’s a natural consequence that more employees will be covered under social security schemes like EPF. This will significantly enhance their financial security post-retirement. Now, lakhs of employees are eagerly awaiting the outcome of the EPFO’s Board of Trustees meeting.