‘Don’t cut salaries’: Govt’s clear directive to companies as EPF wage ceiling rises
Times of India 53 min ago·2 Oct 2026, 7:39 am
The government has raised the Employees' Provident Fund (EPF) wage ceiling from Rs 15,000 to Rs 25,000, a move that will increase the number of employees covered by the scheme. This expansion is expected to benefit over 10 million additional workers, pushing the country further towards a more formalized workforce.
For investors, the primary concern is the potential rise in employer costs. Companies will now have to contribute a larger share to the EPF for higher-paid employees. While this may squeeze profit margins in the short term, the policy aims to improve job security and social security for a larger segment of the population.
Investors should watch for corporate earnings reports to see how companies manage these rising expenses. The long-term impact on the broader economy and employment levels will also be a key area to monitor.
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- Category: Economy.
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