The Employees' Provident Fund Organisation (EPFO) was established to secure the future of employees. Under this organization, a portion of an employee's salary is deposited into a PF account, serving as a corpus for their retirement. The EPFO ​​has its own set of regulations. On September 17, the government introduced a change to PF-related rules that is considered highly beneficial for millions of employees; this change pertains to the wage ceiling.

It is worth noting that the central government had taken a major decision to raise the wage limit under the Employees' Provident Fund (EPF) and Employees' Pension Scheme (EPS) from ₹15,000 to ₹25,000 per month. However, the EPFO ​​has now provided important details regarding this. Through social media, the EPFO ​​has clarified how much will be deducted from the accounts of employees earning ₹25,000 and whether or not they are eligible for the PF scheme.

**Who is eligible for EPFO ​​coverage based on salary?**

Recently, the EPFO ​​shared a post on its official social media handle, 'X'. In this post, the organization clarified the EPS membership eligibility for employees earning a salary of ₹25,000. The post stated: "Dear employees, please know your EPS pension eligibility. If your monthly salary is ₹25,000 or less, EPS membership is mandatory as per eligibility criteria. If your monthly salary exceeds ₹25,000, EPS membership is not mandatory."

**EPFO's Message**

The maximum wage ceiling for basic salary regarding EPF coverage has now been raised from ₹15,000 to ₹25,000. The government implemented this change in light of rising inflation. However, for employees earning above this new limit, EPS rules depend on their existing membership status. Meanwhile, clarity regarding the rules for low-wage earners has also been provided.

Benefits available to EPF subscribers:

Upon retirement, the employee receives the entire accumulated amount in their PF account as a lump sum. Under the Employees' Pension Scheme (EPS), the employee becomes eligible for a regular monthly pension after retirement, subject to meeting certain specified conditions. A third benefit is available under the Employees' Deposit-Linked Insurance (EDLI) scheme.

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