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Cabinet Raises EPFO Wage Ceiling, Expanding Social Security Coverage
The government has increased the salary limit for joining a worker savings and benefits system.
The limit is moving from ₹15,000 to ₹25,000 per month.
This means more than 51 lakh workers may receive these benefits automatically.
Workers in this salary range can save for retirement through the EPF.
They may also receive pension protection through the EPS.
The EDLI scheme can provide insurance protection to eligible members.
The government says wages and incomes have increased since the last change in 2014.
The government will spend about ₹11,339 crore each year on the expanded coverage.
One report says the revised ceiling will take effect on September 17, 2026.
The Union Cabinet raised the mandatory EPFO wage ceiling from ₹15,000 to ₹25,000 per month.
More than 51 lakh additional employees earning between ₹15,000 and ₹25,000 are expected to gain mandatory coverage.
Eligible workers will receive access to EPF savings, EPS pension benefits and EDLI insurance protection, subject to scheme rules.
The annual government expenditure is estimated at ₹11,339 crore, compared with existing support of about ₹10,250 crore.
The ceiling was last increased to ₹15,000 in September 2014, and the government said the latest revision reflects wage and income growth.
- Who
- The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the proposal; Union Minister Ashwini Vaishnaw announced it.
- What
- The mandatory EPFO wage ceiling was raised from ₹15,000 to ₹25,000 per month.
- Where
- The decision concerns workers covered by the Employees’ Provident Fund Organisation in India and was announced in New Delhi.
- When
- The approval was announced on Wednesday; one report states that the revised ceiling will take effect on September 17, 2026.
- Why
- The government said the increase reflects sustained wage growth, rising incomes and the expansion of formal employment, while widening social-security coverage.
Key facts
- New wage ceiling
- ₹25,000 per month
- Previous wage ceiling
- ₹15,000 per month
- Additional workers
- More than 51 lakh employees expected to enter mandatory coverage
- Annual government outgo
- About ₹11,339 crore
- Five-year estimated expenditure
- About ₹56,696 crore
- Covered schemes
- EPF, Employees’ Pension Scheme and Employees’ Deposit Linked Insurance Scheme
- Existing EPFO membership
- About 7.98 crore contributing members across approximately 7.68 lakh establishments
- Pension beneficiaries
- Around 82 lakh pensioners under the Employees’ Pension Scheme
Quotes
Ashwini Vaishnaw
Union Minister who announced the Cabinet decision
“This was a demand for long and has now been approved by the PM. This wider security social net will help employees and employers both. Unskilled minimum wage has increased beyond Rs 15,000 in many states, so this 2014 cap had no basis. So after consultations we have decided to increase salary cap of Rs 25,000.”
financialexpress.com
“Those falling within the Rs 15,000 to Rs 25,000 salary bracket will benefit from this change and will now be covered under the revised PF regulations. The estimated annual expenditure for the government on this measure will be Rs 11,339 crore.”
NDTV
Official government release
Government statement explaining the rationale for the EPFO wage-ceiling revision
“The present decision carries forward this approach by further raising the ceiling to Rs 25,000 to reflect sustained wage growth, rising incomes and continued expansion of formal employment over the intervening years.”
telegraphindia.com
Sources
EPFO wage ceiling increased to Rs 25,000: How the move will expand PF, pension benefits
Government raises EPFO wage ceiling to Rs 25,000, brings 51 lakh more employees under coverage - Telegraph India
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