Will Government Hike Wage Ceiling to Rs 30,000 for Mandatory EPF Contribution?
Antara Bhattacharyya
Wage Ceiling Under Review: The government is evaluating proposals to raise the EPF wage ceiling from ₹15,000 to Rs. 30,000, aiming to expand formal-sector social security coverage.
Impact on Employees: A higher ceiling will increase monthly PF deductions, potentially boosting long-term retirement savings for millions of organized-sector employees across India.
Employers’ Compliance Costs: Companies may see higher statutory contribution expenses, requiring financial adjustments, especially for organizations with large workforces and mid-scale enterprises.
Policy Discussions Ongoing: The proposal is still under deliberation with ministry officials, industry bodies, and EPFO stakeholders, who are assessing its economic feasibility and long-term social security benefits.
Final Decision Expected Soon: A formal announcement may follow after stakeholder consultations, with possible implementation timelines depending on administrative readiness and industry feedback.