EPFO primes itself for life after wage ceiling hike

Listen to this article in summarized format Listen Loading... × × Subscribe to Unlock AI Briefing and Premium Content New Year Offer 24 Hours Left Subscribe Now Already a member? Sign In What's Included Exclusive Stories Daily ePaper Access Smart Market Tools Curated Investment Ideas Ad-lite Experience Subscription Agencies New Delhi: The Employees' Provident Fund Organisation (EPFO) could see its total contributions rise by 25% in 2027-28 following the increase in the wage ceiling to ₹25,000 from ₹15,000, effective September 17. The 240th meeting of EPFO's central board of trustees, scheduled for November 19, will consider the revised estimate for 2026-27 and the budget estimate for 2027-28. The agenda also includes a proposal to invest up to 3% of fresh accretion in alternative investment funds (AIFs), subject to the overall investment ceiling of 5%, either directly or through the Startup India Fund of Funds 2.0 scheme. Also Read: Budget 2027–28: ASSOCHAM calls for tax reforms to boost investment, manufacturing, ease of doing business and tax certainty According to the agenda, reviewed by ET, total contributions in 2026-27 are estimated at ₹4.12 lakh crore, against the budgeted ₹3.80 lakh crore, an increase of 8.37%. Contributions for 2027-28 are budgeted at ₹4.75 lakh crore, 25% higher than the BE for 2026-27. ET Bureau However, these are conservative estimates as they do not account for employees earning monthly wages between ₹15,001 and ₹25,000 who are not currently covered by the scheme. "Accordingly, no indicative projection of additional contribution receipts on account of the likely increase in membership consequent upon the enhancement of the wage ceiling has been factored into RE 2026-27 and BE 2027-28," it said. Live Events "The estimates have, therefore, been projected on a conservative basis to ensure that the budgetary projections remain realistic and do not exceed the likely actual receipts," it added. Also Read: Government prepares draft sustainable aviation fuels policy; moots mandatory blending in ATF from 2027 Investment in Startups More than 1,850 AIFs are currently registered with the Securities and Exchange Board of India (Sebi). As of June 30, 2026, ₹7.10 lakh crore had been invested in AIFs, against ₹7.58 lakh crore raised and ₹17.53 lakh crore committed. "Investments may be permitted in the AIFs managed directly by the National Investment and Infrastructure Fund (NIIF), and through Startup India Fund of Funds 2.0 scheme managed by Sidbi in accordance with the applicable conditions under the Pattern of Investment," it said in its proposal. EPFO will also seek the board's approval to maintain the status quo on the non-redemption of exchange-traded fund (ETF) units during the current financial year, as the criteria specified under its redemption policy have not been met. No ETF redemption has taken place during the current financial year, primarily because holding-period returns have not exceeded the average five-year returns over the past 10 years, as required under the policy. Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel ) Read More News on Employees' Provident Fund Organisation EPFO contribution rise wage ceiling increase total contributions estimate AIF investments investment strategy EPFO Startup India Fund of Funds Securities and Exchange Board of India (You can now subscribe to our Economic Times WhatsApp channel ) Read More News on Employees' Provident Fund Organisation EPFO contribution rise wage ceiling increase total contributions estimate AIF investments investment strategy EPFO Startup India Fund of Funds Securities and Exchange Board of India Prime Exclusives Investment Ideas Stock Report Plus ePaper Wealth Edition Junk bonds are cracking at the bottom. Will the noise get loud enough to make ‘junk bond’ a household term again? PNG connections rise half a million, but how many use piped gas for cooking? Some elections matter more than you know: No crop changed in the fields, yet sugar, coffee and soya got cheaper in a day You can buy a walkie-talkie online. But can you legally use it? KYB and KYC: Quick commerce, the Damani premium and what DMart must deliver – 3rd and concluding part KYC and KYB: Inside Damani’s DMart, the retail chain for the middle class. And stock for the long term? – Part 2 of 3 1 2 3 View all Stories