Archive · 17 Sep 2026
Government Raises PF Wage Ceiling to Rs 25,000
The government changed the rule for who must receive provident fund coverage.
The monthly salary limit was raised from Rs 15,000 to Rs 25,000.
This means workers earning within that range may receive provident fund and other social security benefits.
More than 51 lakh additional employees are expected to be covered by the EPFO.
The government will spend about Rs 11,339 crore each year to support the change.
Union Minister Ashwini Vaishnaw announced the decision after a Cabinet meeting.
The government said wages, incomes and living costs have risen since the last major increase.
It also said the change had been a long-standing demand and could help expand formal employment coverage.
The Union Cabinet raised the mandatory provident fund wage ceiling from Rs 15,000 to Rs 25,000 per month.
More than 51 lakh employees earning between Rs 15,000 and Rs 25,000 are expected to gain EPFO coverage.
The government will spend approximately Rs 11,339 crore annually from its own funds.
Union Minister Ashwini Vaishnaw announced the decision at a Cabinet briefing on September 16, 2026.
The government said the increase reflects rising wages, incomes, living costs and formal employment, while addressing a long-standing demand.
- Who
- The Union Cabinet, 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 increased from Rs 15,000 to Rs 25,000.
- When
- The decision was announced on September 16, 2026, at a Cabinet briefing.
- Where
- The announcement was reported from New Delhi and made at a Cabinet briefing.
- Why
- The government said the change will widen social security coverage and reflect rising wages, incomes, living costs and formal employment; it was also described as a long-standing demand.
- New monthly wage ceiling
- Rs 25,000
- Previous wage ceiling
- Rs 15,000
- Expected additional coverage
- More than 51 lakh employees
- Annual government expenditure
- Approximately Rs 11,339 crore
- Affected salary range
- Employees earning Rs 15,000 to Rs 25,000 per month
- Announced by
- Union Minister Ashwini Vaishnaw
- Announcement date
- September 16, 2026
