Higher EPF wage limit: Monthly PF contributions rise to Rs 3,917
The Employees' Provident Fund Organisation (EPFO) has raised the mandatory wage limit for mandatory Provident Fund (PF) contributions from Rs 15,000 to Rs 25,000 per month. This change will increase employees' contributions from Rs 1,800 to Rs 3,917, with employers' contributions rising from Rs 550 to Rs 917. Additionally, Rs 2,083 will now go towards the pension fund, up from Rs 1,250.
The government implemented this change to bring an additional one crore workers under the social security net, as minimum wages in seven states and Union Territories have surpassed the Rs 15,000 threshold. Employees with a monthly wage of Rs 20,000 will have a mandatory PF contribution of Rs 3,134, while those earning Rs 35,000 will contribute Rs 6,000.
The EPFO's new regime began on September 17, and employers are advised to review contractor compliance and update payroll systems accordingly.
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