Noida, Sep 16 (APAC Media): The Union Cabinet on Wednesday approved raising the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from Rs 15,000 to Rs 25,000 per month, a move expected to bring more than 51 lakh additional employees under the statutory social security framework.
The decision was taken at a Cabinet meeting chaired by Prime Minister Narendra Modi.
The higher ceiling will cover a substantial section of employees earning between Rs 15,000 and Rs 25,000 a month, who are currently not automatically covered under the EPF framework when they join a new job.
“The decision will widen social security protection for workers and ensure that the formal social security framework keeps pace with rising wages and incomes,” the government said.
Employees brought under the expanded coverage will be eligible for benefits under the Employees’ Provident Fund, Employees’ Pension Scheme (EPS) and Employees’ Deposit Linked Insurance Scheme (EDLI), subject to the applicable scheme provisions.
The EPFO wage ceiling was last revised in September 2014, when it was increased from Rs 6,500 to Rs 15,000 per month.
The government said the latest revision takes into account sustained wage growth, rising incomes and the expansion of formal employment over the past decade.
“Raising the ceiling to Rs 25,000 will bring a substantial segment of employees within the statutory social security framework,” the Ministry of Labour and Employment said.
The measure is also expected to support formalisation of employment and improve workforce retention and stability by extending social security benefits to a larger pool of workers.
The proposal was examined through inter-ministerial consultations and was recommended by the Expenditure Finance Committee at its meeting on June 16, 2026.
The annual government expenditure arising from the decision is estimated at around Rs 11,339 crore, compared with the existing annual budgetary support of about Rs 10,250 crore. The expenditure over five years is estimated at approximately Rs 56,696 crore.
According to the latest EPFO data cited by the government, the organisation has around 7.98 crore contributing members across about 7.68 lakh contributing establishments. The EPS provides pension benefits to around 82 lakh pensioners.
The Ministry of Labour and Employment and EPFO will undertake the required statutory and administrative measures to implement the decision.
The government described the move as part of efforts to strengthen India’s social security architecture alongside rising wages and expanding formal employment, in line with its broader vision of Viksit Bharat 2047.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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