Will the PF salary limit be raised to ₹30,000? Government responds

Parliament has sought clarity from the government on whether the minimum salary threshold for Employees’ Provident Fund (EPF) enrolment will be raised to ₹30,000 a month, as questions around wages, pensions and India’s new labour codes dominated the opening days of the winter session. Moneycontrol reported that multiple members asked the labour ministry to explain its position on expanding EPF eligibility and strengthening benefits under the Employees’ Pension Scheme, 1995 (EPS-95).

The scrutiny follows heightened public interest in pay and retirement benefits after the government constituted the Eighth Central Pay Commission in November. The finance ministry has ruled out merging dearness allowance with basic pay, citing a written response to the Lok Sabha.

In a reply tabled in Parliament, the labour ministry said all workers in establishments registered with the EPFO and earning up to ₹15,000 a month continue to be mandatorily covered. It added that any proposal to raise the wage ceiling would require “extensive stakeholders’ consultations”. Lawmakers also pressed for the inclusion of gig and platform workers in EPF, prompting the ministry to cite the Code on Social Security, 2020, which provides for separate social protection measures for this workforce segment, including insurance and old-age benefits.

MPs sought updates on the implementation of the Supreme Court’s November 2022 judgment on higher-wage pensions under EPS-95. The ministry said the EPFO had acted “in a time-bound manner”, noting that an online facility received 17.49 lakh applications for validation of joint options by the July 2023 deadline. Employers forwarded 15.24 lakh of these to the EPFO by January 2025. Nearly 99% of all applications had been processed as of 24 November 2025.

According to the ministry, the EPFO issued 4,27,308 demand letters, of which 34,060 applicants were deemed ineligible. Around 2,33,303 members have deposited the required contributions, including nearly 96,300 still in service. Pension payment orders have been issued to 1,24,457 retired members, while 12,572 remain under finalisation.

Responding to concerns about pension calculations, the ministry defended the pro-rata method set out in Para 12 of EPS-95, describing it as equitable for both wage-ceiling and higher-wage pensioners. It noted that the Supreme Court had upheld the provision. The ministry further confirmed that the scheme faces an actuarial deficit based on its last valuation in March 2019, and highlighted ongoing budgetary support — including a 1.16% contribution from the central government for wages up to ₹15,000.

Members also questioned whether the minimum EPS pension could be increased from ₹1,000 to ₹7,500. The government reiterated its commitment to strengthening benefits while balancing fund sustainability and future liabilities.

The discussion unfolded alongside the formal rollout of India’s consolidated labour codes, including the Code on Wages and the Code on Social Security, which took effect on 21 November. A key shift requires employers to classify at least 50% of total compensation as wages. The change is expected to raise EPF contributions and gratuity liabilities, improving long-term security but potentially reducing take-home pay.

Employment experts told Moneycontrol that payroll adjustments could take two to three months after final rules are notified. Many companies are expected to restructure salary components, especially where basic pay currently forms only 25–40% of total compensation.

While Parliament awaits clarity on whether the EPF wage ceiling will eventually rise, the debate underscores the scale of policy recalibration underway as India attempts to modernise its social security framework and tighten compliance across a more diverse labour market.