Chandigarh. The Government of India has announced a hike in the mandatory salary threshold for the Employees’ Provident Fund (EPF), moving it from ₹15,000 to ₹25,000 per month. This adjustment is expected to pull roughly two lakh additional employees in Punjab into the EPF safety net.

Broader Coverage for Mid‑Income Earners

Under the new rule, anyone earning up to ₹25,000 a month will now fall under EPF jurisdiction. In addition to the traditional provident‑fund accrual, these workers will gain access to pension and insurance components of the scheme. Nationwide, the change could extend EPF protection to an estimated 5.1 million more workers.

Implications for Employers

Since EPF contributions are shared between employees and their employers, firms will likely see a rise in their payroll outlays for the newly‑eligible staff. The increased contribution requirement may tighten labour‑cost margins for many industrial units operating in Punjab.

What Employees Can Expect

For the newly covered workforce, the primary benefit will be a larger pool of retirement savings. However, the higher deduction from salaries could temporarily dent take‑home pay, as a greater portion of wages will be earmarked for the provident fund.

Rationale Behind the Shift

The amendment comes after a prolonged period without changes to the EPF wage ceiling. Officials cite evolving salary structures and the need to broaden social‑security coverage as the main drivers. The central treasury also anticipates an added fiscal load as a consequence of the expanded scheme.