EPF enrolment: Is government planning to increase minimum salary limit from ₹15,000 to ₹30,000?

Under the EPFO rules, employees must contribute to the EPF scheme 1952 if their basic salary is ₹15,000 or above. Many employers calculate the EPF contribution on actual basic salary, while some provide an option to their employees to contribute at ₹15,000. The latter lowers the employee's retirement savings through EPF but enables a higher in-hand pay, which can be used as required.

Recently, there have been rumours that the government may be planning to increase the statutory salary limit for calculating EPF contributions. However, such rumours seem to be untrue as the government has not confirmed any such plan.

In the Lok Sabha on Monday, December 1, 2025, the Union Minister of Labour and Employment, Dr Mansukh Mandaviya, replied to a question on plans to increase the ceiling of minimum salary for EPFO contribution from ₹15,000 to ₹30,000. He didn't confirm any such plan, and said, "Raising the wage ceiling for coverage under EPFO is done based on extensive stakeholders’ consultations including Trade Unions and industry associations as the same will have impact on the take-home salary of employees and on the hiring cost for employers."

Dr Mandavia said the above in a written reply to a query on "whether the Government has any plans to increase the ceiling of the minimum salary to ₹30,000 for enrolment under EPF and if so, the details thereof."

The minister also responded to other queries related to EPF as below:

"As per provision of the EPF scheme 1952, all employees of an establishment registered with EPFO, drawing wage up to ₹15,000/- are mandatorily required to be covered. There is no criterion for minimum wages for coverage under EPF scheme 1952," he said.

As per the Code on Social Security, 2020, 'gig worker' has been defined as a person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationship. Under the Code on Social Security, 2020, there are provisions for social security measures for gig workers and platform workers on matters relating to life and disability cover, accident insurance, health and maternity benefits, old age protection, etc. The Code also provides for setting up a Social Security Fund to finance the welfare scheme. Further, Section 113 of the Code on Social Security, 2020 provides for registration of unorganized workers, gig workers and platform workers.