Supreme Court Orders EPFO to Hike Wage Limit, Boosts Retirement Savings

• Supreme Court directed EPFO to revise the Rs 15,000 monthly wage limit for EPF enrollment within four months.
• This decision stems from a petition highlighting that the wage limit hasn't increased since 2014, despite rising salaries.
• A higher wage limit means increased EPF contributions from both employees and employers, boosting retirement funds.
• The employer's 12% contribution, currently capped at Rs 15,000, will now increase, enhancing both EPF and EPS benefits.
• This move is expected to significantly benefit private sector employees, especially those in the middle-income bracket, by increasing their long-term retirement corpus.

Why It Matters: SC's directive to raise EPF wage limit will significantly boost retirement savings for private sector employees.