World · India Bureau
India Raises Salary Threshold for Mandatory PF Pension Deductions
The government has significantly increased the salary ceiling for mandatory Provident Fund pension contributions from ₹15,000 to ₹25,000 per month, a move aimed at providing relief to mid-income salaried workers.
LSN India ·
India's government has announced a substantial policy revision affecting Provident Fund (PF) pension deductions, raising the mandatory salary threshold by 67 percent. Under the revised guidelines, employees earning up to ₹25,000 per month are now subject to mandatory PF pension contribution rules, an increase from the previous ₹15,000 limit.
The adjustment reflects the government's recognition of rising living costs and inflation across the country over recent years. By elevating the salary ceiling, the policy aims to ease the financial burden on a broader segment of the working population while maintaining the integrity of the PF system.
This change is expected to benefit thousands of salaried employees across various sectors who fall within the expanded income bracket. The move comes as part of ongoing efforts to balance worker welfare with fiscal sustainability of social security schemes.