EPFO has increased the mandatory salary ceiling from 15,000 rupees per month to 25,000 rupees. According to published FAQs, employees will now contribute 3,000 rupees to their pension savings (based on a 12% contribution from a salary of 25,000 rupees), which is higher than the previous 1,800 rupees.
Additionally, employers will contribute 917 rupees (at a rate of 3.67%), which is more than the previous 550 rupees. Thus, the total mandatory monthly contribution to the PF will amount to 3,917 rupees.
The Pension Savings Agency announced that the new regime came into effect on September 17 and requested employers to verify compliance with contractors if contract labor is used, as well as to update their payroll systems.