Archive · 17 Sep 2026
Cabinet Raises EPFO Wage Ceiling, Expanding Social Security Coverage
The government has raised the salary limit for joining a worker-benefits system.
The limit is increasing from ₹15,000 to ₹25,000 per month.
This could bring more than 51 lakh workers into mandatory coverage.
Covered workers can save for retirement through the EPF.
They may also receive pension benefits through the EPS.
The EDLI scheme provides insurance protection to eligible members.
The government says wages and incomes have risen since the last change in 2014.
The change may increase contributions for employers and some workers may take home less pay.
Reports differ about when the new rule begins, with references to Thursday and 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 within the revised band are expected to gain mandatory coverage.
Newly covered workers can access EPF savings, EPS pension benefits and EDLI insurance, subject to scheme rules.
Annual government expenditure is estimated at ₹11,339 crore, up from existing support of about ₹10,250 crore.
Trade unions welcomed the revision but said their demands for a ₹30,000 ceiling or no ceiling were not met.
- 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.
- When
- The approval was announced on a Wednesday; reports differ on implementation, citing Thursday or September 17, 2026.
- Where
- The decision applies to eligible workers in India covered by the Employees’ Provident Fund Organisation.
- Why
- The government cited sustained wage growth, rising incomes and the expansion of formal employment since 2014.
Government and broader-coverage rationale
Union and cost concerns
Coverage level
Government and broader-coverage rationale
The government says raising the ceiling will bring more than 51 lakh employees into statutory social security and widen access to retirement savings, pensions and insurance.
Union and cost concerns
Trade unions welcomed the revision but said it was inadequate: the Bharatiya Mazdoor Sangh and AITUC sought a ₹30,000 ceiling, while CITU called for abolishing the ceiling altogether.
Impact on employers and workers
Government and broader-coverage rationale
The government expects wider coverage to support formal employment, employee retention, workforce stability and long-term retirement security.
Union and cost concerns
EY India’s Puneet Gupta said employers would face higher PF, pension and EDLI contributions, while affected employees could see lower take-home pay; officials estimated average total EPF contributions could rise by about ₹600 monthly.
Insurance protection
Government and broader-coverage rationale
The revised framework extends access to EDLI insurance for newly covered employees, subject to scheme provisions.
Union and cost concerns
CITU’s K.N. Umesh said the EDLI death benefit, currently reported as ₹7 lakh, should also be increased and asked the government to clarify whether it would change.
- New wage ceiling
- ₹25,000 per month
- Previous ceiling
- ₹15,000 per month, last revised in September 2014
- Expected additional coverage
- More than 51 lakh employees; one report gave a broader estimate of 5–10 million
- Annual government expenditure
- About ₹11,339 crore, compared with existing support of approximately ₹10,250 crore
- Five-year estimated expenditure
- Approximately ₹56,696 crore
- Covered schemes
- Employees’ Provident Fund, Employees’ Pension Scheme and Employees’ Deposit Linked Insurance Scheme
- Current EPFO scale
- About 7.98 crore contributing members across approximately 7.68 lakh establishments; EPS supports around 82 lakh pensioners
- Reported implementation timing
- Reports cite Thursday or September 17, 2026, so the implementation date is inconsistent across sources
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
EPFO Mandatory Wage Ceiling Raised from Rs 15000 to Rs 25000
EPFO wage ceiling raised to Rs 25,000 per month; demand not met, say trade unions - Telegraph India
EPFO wage ceiling to be hiked after 12 years
Provident Fund Wage Ceiling Hiked To Rs 25,000 From Rs 15,000 Per Month
EPFO Wage Ceiling Raised To ₹25,000: Cabinet Decision To Expand Social Security Coverage
Cabinet Lifts EPF And EPS Wage Limit By ₹10,000, New Ceiling Set At ₹25,000
