From September 17, the wage limit will be Rs. 15,000 to Rs. 25,000, the total contribution to the Employees’ Provident Fund Organization (EPFO) may increase by 25 per cent in 2027-28. The 240th meeting of the Central Board of Trustees of EPFO is scheduled to be held on November 19. In which the revised estimate of 2026-27 and the budget estimate of 2027-28 will be considered. Also on the agenda is a proposal to invest up to 3 per cent of the newly raised funds in ‘Alternative Investment Funds’ (AIFs). This investment can be made directly or through the ‘Startup India Fund of Funds 2.0’ scheme, provided the total investment limit does not exceed 5 percent.
How much contribution is estimated?
According to an ET report, the total contribution in FY 2026-27 will be Rs. 4.12 lakh crore, which is estimated to be Rs. 3.80 lakh crore is 8.37 percent more than Rs. The contribution budget for 2027-28 has been pegged at Rs 4.75 lakh crore, which is 25 per cent higher than the budget estimate for 2026-27. These estimates have been made with great caution. This does not include employees whose monthly salary is Rs. 15,001 to Rs. 25,000 and who are not yet covered under the scheme. It has been said that increasing the salary cap will likely increase the number of members, which may also result in additional contributions. But, this additional contribution has not been included in the Revised Estimates for 2026-27 and the Budget Estimates for 2027-28. He further said that these estimates have been prepared with care so that the budget figures are realistic and do not exceed the actual receipts.
Investing in startups
Currently, more than 1,850 AIFs are registered with the Securities and Exchange Board of India (SEBI). By June 30, 2026, AIFs with Rs. 7.10 lakh crore was invested, while a total of Rs. 7.58 lakh crore was collected and Rs. 17.53 lakh crore commitments were received. Investments in AIFs may be allowed in AIFs managed directly by the National Investment and Infrastructure Fund (NIIF) and the ‘Startup India Fund of Funds 2.0’ scheme run by SIDBI, its proposal said. This investment will be as per the conditions applicable under ‘Pattern of Investment’.
The EPFO will also seek approval from the board to maintain the status quo on redemption of exchange-traded fund (ETF) units during the current financial year, as the norms laid down in its redemption policy have not been followed. No ETF has been redeemed during the current financial year. The main reason for this is that the holding-period return is not higher than the average five-year return of the last 10 years, which is a policy prerequisite.
