Proposed ₹25,000 EPF wage ceiling could raise compliance costs for organised retailers
India is considering raising the mandatory EPF and EPS wage ceiling from ₹15,000 to ₹25,000 a month, subject to Union Cabinet approval. For retail employers with 20 or more workers, the move could widen pension coverage and increase payroll-linked contributions from April 2027.
India plans to raise the mandatory EPF and EPS wage ceiling to ₹25,000, expanding coverage and increasing payroll compliance costs for organised employers, including retail operators with 20 or more workers. Cabinet approval is pending, with rollout expected from April 2027.
Why this matters
The proposal follows EPFO moves to target same-day claims and BHIM-UPI payouts, explore voluntary PF for gig workers, and extend pension coverage through EPFO 3.0.
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