New Revision in EPF Limit

The Central Provident Fund Commissioner (CPFC) provided a detailed explanation of the proposed changes and requested the Board's approval as outlined in the agenda.

Suggestions from Employers' Representatives

1. Employers expressed concern over the steep increase in the wage ceiling from ₹6,500 to ₹15,000.
2. They suggested a phased implementation — first raising it to ₹10,000, and then to ₹15,000.
3. Representatives noted that Micro, Small, and Medium Enterprises (MSMEs) could face significant challenges due to the increased financial burden.
4. Despite concerns, they supported the move to increase the minimum pension to ₹1,000.

It was also acknowledged that the increase in EPF limits would lead to a higher administrative workload. To manage this effectively, more human resources and infrastructure would be required by the Employees’ Provident Fund Organisation (EPFO).

Response from Employees' Representatives

1. Employee representatives supported the proposal to increase the wage ceiling and the minimum pension.
2. They stressed the need to further discuss the conditions associated with the pension increase.
3. They also emphasized the importance of strengthening organisational resources to handle the increased workload.
4. The representatives thanked the Chairman for his role in pushing the proposal through the Ministry of Finance.

Additional Major Decision by the CBT

Another significant decision taken by the Central Board of Trustees (CBT) was the reduction in administration charges from 1.10% to 0.85%. This move is expected to ease the burden on employers while maintaining the fund’s efficiency.

EPF Limits

Therefore, being based on these changes, and as in October 2015, the decisions made in the meeting has impacted in the following changes in the EPF limits.

• 8.33% from the employer's share of Provident Fund contributions of the total salaries that is limited to Rs. 15,000 each month is sectioned and contributed towards the Employees' Pension Fund.
• A payment of 0.5%, of the total wages amounting to a maximum of Rs. 15,000 has to be done by the employer every month, against the Employees' Deposit Linked Insurance Scheme.
• Under the Employees' Deposit Linked Insurance Scheme a maximum of Rs. 3,60,000 per annum.
• 12% of the basic pay, Daily Allowance , food concession along with retaining allowance, if there are any, can amount to a maximum of Rs.15,000 each month is to be paid by the employer and the employee against EPF contribution.