On June 1, 2024, the Employees' Provident Fund Organisation lifted the statutory wage ceiling from ₹15,000 to ₹25,000 per month. Employers who had capped contributions at the old ceiling now face a new maximum. Employees earning above ₹15,000 but below ₹25,000, who were previously exempt, are suddenly required to join the PF scheme.
The change brings 3.4 million workers into the net. A typical mid‑level technician earning ₹22,000 will see his monthly deduction jump from ₹1,680 to ₹2,640. That extra ₹960 is split between the employee and the employer, with 8.33% of wages earmarked for pension and the remainder for the fund.
Because the ceiling now sits at ₹25,000, the maximum pension allocation rises from ₹1,250 to ₹2,083 per month. Employees who join now will also qualify for Employees' Deposit Linked Insurance, which covers accidental death or disability. The net effect is a lower take‑home pay but a larger retirement pot.
Employers must adjust their payroll software by July 15 to reflect the new ceiling. Workers can verify their PF account balance within the EPFO portal and will see the updated contributions within 30 days. The government plans to audit compliance in the first quarter of 2025.