SC Directs EPF Wage Cap Review: What it Means for Salaried Employees

• Supreme Court has directed the provident fund authority to reassess the ₹15,000 Employees' Provident Fund (EPF) wage cap.
• A judicial panel instructed the Central government to finalize a decision regarding the increment of this wage ceiling within a four-month timeframe.
• The existing threshold has remained unchanged since 2014, despite substantial wage growth, impacting retirement savings.
• A higher ceiling would lead to increased contributions, potentially enhancing retirement savings and pension benefits, but might reduce take-home pay.
• Financial advisors recommend diversifying retirement planning beyond EPF, suggesting instruments like PPF and NPS.

Why It Matters: SC's directive to review EPF wage cap could significantly impact salaried employees' retirement savings.