EPFO proposes raising pension salary cap to ₹25,000 per month for broader coverage
The Employees' Provident Fund Organisation (EPFO) is planning a major change to India’s pension system. A proposal to raise the salary cap for mandatory pension contributions from Rs 15,000 to Rs 25,000 per month is now under review. If approved, the move could extend retirement benefits to over 1 crore additional workers.
At present, only employees earning up to Rs 15,000 per month are automatically enrolled in the pension scheme. Those earning more can choose to join, but many do not. The government, through the Ministry of Labour and Employment, has now proposed increasing this wage ceiling to ensure broader coverage.
The proposed increase in the salary cap would widen access to retirement benefits for millions. Workers earning between Rs 15,000 and Rs 25,000 per month would then be automatically included in the pension system. The final decision rests with the Central Board of Trustees in the next review cycle.
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