Don't cut salaries: India sends a missive to companies after new ₹25,000 EPF wage ceiling
- Posted on September 26, 2026
- By Business News Today
- 1 Views
- 1 min read
In brief
India's Labour Ministry has issued guidance to employers maintaining wage stability following the expansion of the Employees' Provident Fund Organization ceiling to ₹25,000 monthly. This policy extension mandates pension scheme coverage for workers in the ₹15,000-₹25,000 salary bracket. Rather than reducing compensation, the government encourages companies to view enhanced contributions as strategic HR investments and offers employment incentives to offset increased pension obligations.
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Don't cut salaries: India sends a missive to companies after new ₹25,000 EPF wage ceiling
The Labour and Employment Ministry has instructed employers to maintain employees' statutory wages after raising the EPFO ceiling. Workers earning between ₹15,000 and ₹25,000 are now mandatorily covered under the Employees' Pension Scheme. Employers are encouraged to view their contributions as part of good human resource practices. The government offers financial incentives for new employment to mitigate increased costs.
