Centre Approves EPFO Wage Ceiling Hike to ₹25,000
Move to bring over 51 lakh more employees under mandatory social security coverage
GG News Bureau
New Delhi, 16th Sept: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Labour and Employment Ministry’s proposal to raise the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from ₹15,000 to ₹25,000 per month.
The decision is expected to bring more than 51 lakh additional employees under mandatory EPFO coverage, widening access to provident fund, pension and insurance benefits.
The EPFO wage ceiling was last increased to ₹15,000 in September 2014. The latest revision takes into account rising wages, higher incomes and the expansion of formal employment over the past decade.
Wider access to social security
Under the revised ceiling, employees earning between ₹15,000 and ₹25,000 a month will come within the statutory social security framework. The expansion will provide eligible workers access to:
- Employees’ Provident Fund (EPF) savings
- Employees’ Pension Scheme (EPS) benefits
- Employees’ Deposit Linked Insurance Scheme (EDLI) protection
- Statutory social security contributions and associated benefits
The government said the measure is expected to support employment formalisation, worker retention and long-term retirement security.
Government expenditure
The proposal was examined through inter-ministerial consultations and recommended by the Expenditure Finance Committee at its meeting on June 16, 2026.
The annual government expenditure under the revised framework is estimated at around ₹11,339 crore, compared with existing annual budgetary support of approximately ₹10,250 crore. The estimated expenditure over five years is about ₹56,696 crore.
EPFO’s scale
EPFO currently administers three major social security schemes — EPF, EPS and EDLI. According to the latest data cited by the government, EPFO has around 7.98 crore contributing members across approximately 7.68 lakh contributing establishments.
The Employees’ Pension Scheme provides pension benefits to around 82 lakh pensioners, while EDLI offers insurance protection linked to EPF membership.
The government said the enhanced wage ceiling is intended to align statutory social security coverage with prevailing wage levels and the growth of formal employment, as part of the broader social security framework envisaged for Viksit Bharat@2047.
The Ministry of Labour & Employment and EPFO will undertake the required statutory and administrative measures to implement the decision.
