Overview
- Senior officials say the proposal could go before the EPFO Central Board of Trustees next month, with a possible April 1 start if it secures approval.
- The move follows the court directive to re-examine the stagnant limit, which has remained unchanged since 2014 despite rising wages and inflation.
- Lifting the threshold to Rs 25,000 would extend compulsory EPF and EPS contributions to more workers and increase monthly inflows into the retirement corpus.
- Employees earning between Rs 15,000 and Rs 25,000 would see lower take‑home pay due to 12% contributions matched by employers, while companies would face higher payroll outgo and compliance.
- The labour ministry points to ongoing consultations with unions and industry, and some reports estimate that more than one crore additional workers could come under mandatory coverage.