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Personal Finance News

Pension Update: Govt to reassess ₹15k EPF cap to secure workers’ retirement, says DFS Secretary

Upstox
By Upstox News Desk

2 min read | Updated on November 19, 2025, 08:54 IST

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SUMMARY

As per a report by PTI, the government is reconsidering whether the ₹15,000 monthly salary cap for compulsory pension enrolment under the Employees Provident Fund (EPF) remains adequate to ensure financial security for workers.

pension update

DFS Secretary M. Nagaraju said the existing structure leaves many employees earning above the threshold without any pension cover. | Image: Shutterstock

India may soon re-evaluate the ₹15,000 salary ceiling for mandatory pension enrolment as policymakers push to strengthen the country’s pension system, expand EPF coverage, and enhance social security for millions of workers.

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As per a report by PTI, the government is reconsidering whether the ₹15,000 monthly salary cap for compulsory pension enrolment under the Employees Provident Fund (EPF) remains adequate to ensure financial security for workers.

Speaking in Mumbai on Tuesday, Department of Financial Services (DFS) Secretary M. Nagaraju said the existing structure leaves many employees earning above the threshold without any pension cover.

PTI quoted Nagaraju as saying it is “very bad” that several private-sector workers who earn more than ₹15,000 a month are not enrolled in any pension scheme and eventually become dependent on their children in their later years.

He explained that EPF enrolment is mandatory only for those earning below ₹15,000 a month, creating what he described as an “inconsistency” in the system at a time when the government is working to widen the pension net.

Speaking at the CII Financing Summit, Nagaraju emphasised the need to secure the future of those earning “a little more” as well, so they do not face financial vulnerability in old age.

He added that enrolment under the Atal Pension Yojana has now crossed 8.3 crore subscribers, with women accounting for 48% of participants.

According to PTI, Nagaraju noted that the government will continue efforts to bring more people, especially from the unorganised sector, under formal social security schemes.
At the same event, PTI reported that IRDAI member (life) Swaminathan S. Iyer flagged concerns about whether younger generations, especially Gen Z, will have adequate retirement savings 30 years from now amid rising consumerism. He highlighted that more than two-thirds of Indians still do not have life insurance.

Iyer also observed that despite 25 years of private-sector participation in insurance, over 85% of business continues to come from urban markets, leaving rural and semi-urban regions underserved. He stressed that achieving “insurance for all” will require far deeper penetration into India’s hinterland.

He added that the IRDAI plans to work on standardising insurance communication campaigns to ensure clear and consistent messaging for citizens.

-With PTI inputs

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Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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