Archive · 18 Sep 2026
Cabinet Raises EPFO Wage Ceiling to Expand Worker Coverage
The Union Cabinet raised the monthly pay limit for mandatory EPFO coverage.
The limit will increase from Rs.
15,000 to Rs.
25,000.
This means more workers will automatically receive social-security protection.
More than 51 lakh additional employees may be covered.
Their benefits can include provident fund savings, pensions and insurance.
SCOPE welcomed the decision as a positive step.
It said the move could help make more jobs part of the formal workforce.
SCOPE also said better protection could help workers stay productive and remain with their employers.
The Union Cabinet approved raising the mandatory EPFO wage ceiling from Rs. 15,000 to Rs. 25,000 per month.
The proposal was submitted by the Ministry of Labour & Employment.
More than 51 lakh additional employees are expected to receive mandatory EPFO coverage.
The expanded coverage will provide provident fund, pension and insurance protection to more formal-sector workers.
SCOPE said the decision could support workforce formalization, productivity, retention and the Viksit Bharat@2047 vision.
- Who
- The Union Cabinet approved the change, and the Standing Conference of Public Enterprises welcomed it.
- What
- The mandatory Employees' Provident Fund Organisation wage ceiling will rise from Rs. 15,000 to Rs. 25,000 per month.
- Where
- India
- Why
- The change is intended to extend social-security protection to more employees and support workforce formalization, productivity and retention.
- Previous wage ceiling
- Rs. 15,000 per month
- New wage ceiling
- Rs. 25,000 per month
- Expected additional coverage
- More than 51 lakh employees
- Benefits affected
- Provident fund, pension and insurance protection
- Approving body
- Union Cabinet
- Proposal source
- Ministry of Labour & Employment
- Welcoming organization
- Standing Conference of Public Enterprises (SCOPE)