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Government Raises PF Wage Ceiling to Rs 25,000
The government has changed the rule for who must receive provident fund benefits.
The monthly salary limit has increased from Rs 15,000 to Rs 25,000.
This means more workers can receive retirement savings, pension, and insurance benefits.
About 51 lakh more employees may be covered.
The Employees' Provident Fund Organisation will provide this expanded coverage.
The government says the change will widen social security protection.
It also hopes the policy will help employers keep their workers.
The government plans to spend about Rs 11,339 crore each year on the change.
The government raised the monthly wage ceiling for mandatory provident fund coverage to Rs 25,000 from Rs 15,000.
Union Minister Ashwini Vaishnaw announced the decision at a Cabinet briefing on September 16, 2026.
The move is intended to expand social security coverage and help employers retain workers.
Around 51 lakh additional employees are expected to come under Employees' Provident Fund Organisation coverage.
The government will spend approximately Rs 11,339 crore annually from its own funds.
- Who
- The government, announced by Union Minister Ashwini Vaishnaw, and employees covered by the Employees' Provident Fund Organisation.
- What
- The monthly wage ceiling for mandatory provident fund coverage was raised from Rs 15,000 to Rs 25,000.
- Where
- At a Cabinet briefing; the article does not specify the location.
- When
- The decision was announced on September 16, 2026, at a Cabinet briefing.
- Why
- To widen social security coverage, extend provident fund-related benefits to more employees, and help employers retain their workforce.
Key facts
- New monthly wage ceiling
- Rs 25,000
- Previous wage ceiling
- Rs 15,000
- Estimated additional employees covered
- Approximately 51 lakh
- Annual government spending
- Around Rs 11,339 crore
- Benefits involved
- Retirement savings, pension, and insurance benefits
- Announced by
- Union Minister Ashwini Vaishnaw
- Announcement date
- September 16, 2026
Sources
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