India to raise EPF salary ceiling to Rs 25,000 in 2027

The Indian Finance Ministry’s Department of Expenditure has approved a proposal to increase the mandatory Employees' Provident Fund (EPF) wage ceiling from Rs 15,000 to Rs 25,000 per month. The change, which would bring workers earning between Rs 15,000 and Rs 25,000 under compulsory EPF and Employees' Pension Scheme (EPS) coverage, is slated for implementation on 1 April 2027, subject to final Union Cabinet approval.

This is the first revision of the EPF ceiling in about 12 years; the previous increase in 2014 raised the limit from Rs 6,500 to Rs 15,000. Employers will need to extend contributions to a larger pool of employees, and the central government’s share of EPS contributions is expected to rise accordingly. Companies will have to update payroll and compliance systems, and employees in the newly covered band will benefit from greater retirement savings, though their take‑home pay may see a modest reduction due to mandatory deductions.