Chandigarh. The Union Government has announced a hike in the mandatory salary threshold for the Employees’ Provident Fund (EPF) from ₹15,000 to ₹25,000 per month. This adjustment is expected to pull roughly two‑lakh additional workers in Punjab into the statutory social‑security framework.

Extended coverage for a broader workforce

Under the revised rule, any employee drawing up to ₹25,000 monthly will now fall under EPF jurisdiction. Apart from the usual provident‑fund accrual, they will also become eligible for pension and insurance components of the scheme. Across India, the policy could swell the EPFO‑covered pool by about 5.1 million workers.

Implications for industrial employers

Because EPF contributions are shared between employee and employer, firms will need to allocate higher amounts for staff whose wages now qualify. This shift is poised to add pressure on overall labour‑cost structures, especially for sectors with thin margins.

What it means for employees

For workers previously exempt due to the lower ceiling, the change translates into a larger payroll deduction for their retirement fund. While this will boost long‑term savings, some may experience a modest dip in their immediate take‑home pay.

Rationale behind the move

The government says the revision aims to broaden social‑security coverage in line with evolving wage patterns. It also acknowledges that the state will shoulder an extra fiscal load to support the expanded scheme.