The Employees’ Provident Fund Organisation (EPFO) is a statutory body under the Ministry of Labour and Employment, Government of India, established to provide social security to employees in India.
Main objective of EPFO
Its primary objective is to manage the retirement savings of employees in both the public and private sectors by operating three main schemes: the Employees’ Provident Fund Scheme (EPF), the Employees’ Pension Scheme (EPS), and the Employees’ Deposit Linked Insurance Scheme (EDLI).
It has been reported that the central government will soon fulfill the long-standing demand of raising the EPFO salary limit for subscribers. In September 2014, it revised the salary threshold for determining the monthly contribution of employees to the Provident Fund and Pension Scheme run by the Employees’ Provident Fund Corporation.
EPFO salary limit from Rs 15,000 to Rs 21,000?
According to reports, the Center is considering raising the EPFO salary limit from Rs 15,000 to Rs 21,000. However, various employee unions have demanded that this limit be increased to Rs 25,000.
Employees Pension Scheme (EPS) is administered by EPFO. After coming to power at the Center in 2024, the Modi government had raised the salary threshold for calculating EPS pension from Rs 6,500 to Rs 15,000. However, the proposed hike will provide much-needed relief and enhanced benefits to employees.
In August, FE learned from online sources that the Labor Ministry had sent a proposal to the Finance Ministry to raise the salary limit for PF and EPS contribution from the current Rs 15,000 to Rs 21,000.