Cabinet Approves Increase in EPFO Wage Ceiling to ₹25,000 – What Changes?
The Government has approved an increase in the EPFO mandatory coverage wage ceiling from ₹15,000 to ₹25,000 per month. The change is expected to bring more than 51 lakh additional employees under mandatory EPFO coverage. What Changes? Higher EPFO Coverage Limit The mandatory coverage ceiling will move from ₹15,000 to ₹25,000 per month, bringing more employees into the EPFO framework. Employees Between ₹15,000 and ₹25,000 Eligible new employees in this wage range who were previously outside mandatory EPFO coverage may now become covered, subject to the final implementation rules. Wider Social Security More employees will have access to EPF, EPS and EDLI benefits, as applicable under the respective schemes. Payroll & Compliance Changes Employers will need to review their PF applicability, new-joiner process, UAN/Form 11 process and payroll software configuration once the detailed rules are notified. Contribution Calculation Is a Separate Issue The increase to ₹25,000 is p...