EPFO plans to raise pension salary cap to Rs 25,000 per month
The Employees' Provident Fund Organisation (EPFO) is reviewing a proposal to raise the salary cap for mandatory pension contributions. Currently, only workers earning up to Rs 15,000 per month are automatically enrolled in the scheme. If approved, the change could extend retirement benefits to millions more employees across India.
Under the existing rules, employees with a monthly salary above Rs 15,000 can opt into the pension system, but many choose not to. The EPFO now plans to increase this threshold to Rs 25,000 per month. This adjustment aims to bring over 1 crore additional workers under retirement protection.
The proposed increase from Rs 15,000 to Rs 25,000 would significantly expand pension coverage. Workers earning between these amounts would gain automatic enrolment, reducing reliance on voluntary sign-ups. The final decision rests with the Central Board of Trustees in their next meeting.
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