EPFO Raises Mandatory Coverage Salary Limit to ₹25,000

The EPFO's decision to raise the mandatory coverage salary limit represents a significant expansion of the country's formal pension and social security framework. The revised threshold of ₹25,000 per month, up from the previous ₹15,000, will bring a substantial portion of the workforce under the organisation's protective umbrella.

Workers whose monthly salaries fall within the newly expanded range will gain access to three critical financial security schemes: the Employees' Provident Fund (EPF), the Employees' Pension Scheme (EPS), and the Employees' Deposit Linked Insurance (EDLI). These programmes provide long-term retirement benefits, pension coverage, and insurance protection respectively.

The expansion is anticipated to benefit more than 51 lakh employees who were previously outside the mandatory EPFO coverage framework. For these workers, the change will ensure systematic accumulation of retirement savings through employer and employee contributions, along with pension guarantees and life insurance coverage.

The policy adjustment reflects efforts by Indian authorities to broaden formal sector social security coverage and strengthen the financial resilience of the workforce. The move aligns with broader initiatives to formalize employment relationships and extend welfare protections across income segments.