World · India Bureau
India may raise mandatory PF salary threshold to ₹25,000
The government is set to convene a critical meeting to discuss pension fund policy changes. A significant proposal under consideration could nearly double the mandatory Employee Provident Fund salary threshold from ₹15,000 to ₹25,000.
LSN India ·
A high-level meeting scheduled for Thursday will review proposed amendments to Employee Provident Fund regulations, with government officials poised to examine raising the mandatory salary limit for EPF contributions.
The current ceiling of ₹15,000 monthly salary, below which EPF membership is discretionary rather than compulsory, has been a subject of debate among policymakers and industry representatives seeking to expand pension coverage among Indian workers.
If approved, the revised threshold of ₹25,000 would significantly broaden the employee base required to participate in the contributory pension scheme, potentially affecting millions of workers across various sectors in the formal economy.
The proposed change reflects ongoing efforts to strengthen social security nets for Indian workers and expand the reach of organized pension systems. Government officials are expected to present detailed analysis regarding the impact of such modifications on employers and eligible workers during the meeting.
The outcome of today's deliberations could reshape pension enrollment requirements and influence compensation structures across multiple industries in India's formal sector.