World · India Bureau
India raises mandatory pension scheme salary threshold to 25,000 rupees
The central government has expanded mandatory Employee Provident Fund coverage by raising the salary threshold from 15,000 to 25,000 rupees, effective September 17. The policy change is expected to bring over 5.1 million additional workers under the social security net.
LSN India ·
NEW DELHI — India's government has significantly broadened the scope of its mandatory Employee Provident Fund scheme by increasing the mandatory coverage threshold to 25,000 rupees per month, up from the previous limit of 15,000 rupees.
The decision, effective from September 17, will extend pension, insurance and savings protection to millions of additional workers earning between 15,000 and 25,000 rupees monthly. Government officials estimate that the policy change will bring over 5.1 million new employees into the EPFO's mandatory coverage framework, substantially expanding the social security safety net for India's working population.
Workers falling within the expanded salary band will now receive standardized benefits including provident fund savings, pension coverage and insurance protection as per EPFO regulations. The scheme ensures workers accumulate retirement savings through combined employer and employee contributions alongside government-backed pension and insurance provisions.
The government has estimated the fiscal impact of the expanded mandate at approximately 11,339 crore rupees, reflecting the additional social security commitments undertaken through the policy revision. Officials characterize the measure as a step toward broader social security coverage for India's organized sector workforce.