Union Cabinet approves hike in EPFO wage ceiling to Rs 25,000
New Delhi, Sept 16 (TNT): The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a proposal to increase the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from Rs 15,000 to Rs 25,000 per month.
The move is expected to bring more than 51 lakh additional employees under mandatory EPFO coverage and expand access to statutory social security benefits.
Employees earning between Rs 15,000 and Rs 25,000 a month will be brought within the mandatory coverage framework, making them eligible for provident fund savings, pension benefits under the Employees’ Pension Scheme (EPS) and insurance protection under the Employees’ Deposit Linked Insurance Scheme (EDLI), subject to applicable provisions.
The EPFO wage ceiling was last revised in September 2014, when it was raised to Rs 15,000.
The government said the latest revision takes into account rising wages and incomes and the continued expansion of formal employment.
The proposal was recommended by the Expenditure Finance Committee at its meeting on June 16, 2026, following inter-ministerial consultations.
The annual government expenditure under the revised ceiling is estimated at Rs 11,339 crore, compared with the existing annual budgetary support of around Rs 10,250 crore.
The estimated expenditure over five years is around Rs 56,696 crore.
The government said the measure would also support formalisation of employment, worker retention and long-term retirement security by bringing a larger section of the workforce under the statutory social security framework.
EPFO administers the Employees’ Provident Fund, Employees’ Pension Scheme and Employees’ Deposit Linked Insurance Scheme.
According to the latest data cited by the government, EPFO has around 7.98 crore contributing members across about 7.68 lakh contributing establishments, while the EPS provides pension benefits to around 82 lakh pensioners.
The Ministry of Labour and Employment and EPFO will take the necessary statutory and administrative steps to implement the decision.
TNT KS
