EPFO wage ceiling raised: ₹15,000 to ₹25,000, 51 lakh more employees get cover from Sept 17
The decision marks the first revision in the EPFO wage ceiling since September 2014, when it was increased to Rs 15,000.
- Sep 16, 2026,
- Updated Sep 16, 2026 3:48 PM IST
The Union Cabinet, chaired by PM Narendra Modi, has approved a proposal to raise the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from Rs 15,000 to Rs 25,000 per month. The move is expected to bring more than 51 lakh additional employees under the statutory social security framework.
The decision marks the first revision in the EPFO wage ceiling since September 2014, when it was increased to Rs 15,000. The government said the latest enhancement takes into account sustained wage growth, rising incomes and the expansion of formal employment over the past decade.
At present, employees joining a job at a wage above Rs 15,000 per month are not automatically covered under the mandatory EPF framework, subject to applicable provisions. With the ceiling now proposed to be raised to Rs 25,000, employees earning between Rs 15,000 and Rs 25,000 a month will be brought within mandatory EPFO coverage.
Employees earning up to Rs 25,000 to get mandatory coverage
At present, employees joining a job at a wage above Rs 15,000 per month are not automatically covered under the mandatory EPF framework, subject to applicable provisions. With the ceiling now proposed to be raised to Rs 25,000, employees earning between Rs 15,000 and Rs 25,000 a month will be brought within mandatory EPFO coverage.
Sources in the Labour Ministry said the Union Cabinet has approved raising the statutory wage ceiling for mandatory EPFO coverage from ₹15,000 to ₹25,000 per month, according to the document. The ceiling has remained unchanged since September 2014, even as wages, minimum wages and living costs have increased.
The move will bring employees earning between ₹15,000 and ₹25,000 a month under automatic statutory social-security coverage, giving them access to provident fund savings, EPS pension eligibility and EDLI insurance protection. The document says the revised ceiling will take effect from September 17, 2026, and is aimed at widening social-security coverage and promoting formal employment.
| Particulars | Details |
|---|---|
| Current EPFO wage ceiling | ₹15,000 per month |
| Revised wage ceiling | ₹25,000 per month |
| Increase | ₹10,000 per month |
| Effective from | September 17, 2026 |
| Coverage impacted | Employees earning ₹15,000–₹25,000 per month |
| Key benefits | Provident Fund savings, EPS pension eligibility and EDLI insurance protection |
ALSO READ: EPFO launches official WhatsApp channel: Here's how to join, what members can expect
EPF, pension and insurance benefits
The expanded coverage will provide access to provident fund savings, pension benefits under the Employees’ Pension Scheme (EPS) and insurance protection under the Employees’ Deposit Linked Insurance Scheme (EDLI), subject to the respective scheme provisions.
The move will also align the statutory contribution and pensionable-wage framework more closely with prevailing wage levels.
MUST READ: Gen Z drives 79% of new formal job accounts in India in FY26: Quess report
Government outgo estimated at Rs 11,339 crore annually
The proposal underwent inter-ministerial consultations and was recommended by the Expenditure Finance Committee at its meeting on June 16, 2026. The annual government outgo from the measure is estimated at around Rs 11,339 crore, compared with existing annual budgetary support of approximately Rs 10,250 crore. Over five years, the estimated expenditure is around Rs 56,696 crore.
EPFO covers nearly 8 crore contributing members
EPFO administers three major social security schemes — the Employees’ Provident Fund (EPF), Employees’ Pension Scheme (EPS) and Employees’ Deposit Linked Insurance Scheme (EDLI).
According to the latest data cited by the government, EPFO has around 7.98 crore contributing members across approximately 7.68 lakh contributing establishments. The EPS provides pension benefits to around 82 lakh pensioners, while EDLI offers insurance protection linked to EPF membership.
Move aimed at expanding formal social security
The government said the higher ceiling is expected to support employment formalisation, worker retention and long-term retirement security. Wider EPFO coverage could provide employees with greater access to structured retirement savings and social security benefits, while employers could benefit from improved workforce stability and retention.
The Ministry of Labour and Employment and EPFO will now undertake the necessary statutory and administrative steps to implement the decision.
The Union Cabinet, chaired by PM Narendra Modi, has approved a proposal to raise the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from Rs 15,000 to Rs 25,000 per month. The move is expected to bring more than 51 lakh additional employees under the statutory social security framework.
The decision marks the first revision in the EPFO wage ceiling since September 2014, when it was increased to Rs 15,000. The government said the latest enhancement takes into account sustained wage growth, rising incomes and the expansion of formal employment over the past decade.
At present, employees joining a job at a wage above Rs 15,000 per month are not automatically covered under the mandatory EPF framework, subject to applicable provisions. With the ceiling now proposed to be raised to Rs 25,000, employees earning between Rs 15,000 and Rs 25,000 a month will be brought within mandatory EPFO coverage.
Employees earning up to Rs 25,000 to get mandatory coverage
At present, employees joining a job at a wage above Rs 15,000 per month are not automatically covered under the mandatory EPF framework, subject to applicable provisions. With the ceiling now proposed to be raised to Rs 25,000, employees earning between Rs 15,000 and Rs 25,000 a month will be brought within mandatory EPFO coverage.
Sources in the Labour Ministry said the Union Cabinet has approved raising the statutory wage ceiling for mandatory EPFO coverage from ₹15,000 to ₹25,000 per month, according to the document. The ceiling has remained unchanged since September 2014, even as wages, minimum wages and living costs have increased.
The move will bring employees earning between ₹15,000 and ₹25,000 a month under automatic statutory social-security coverage, giving them access to provident fund savings, EPS pension eligibility and EDLI insurance protection. The document says the revised ceiling will take effect from September 17, 2026, and is aimed at widening social-security coverage and promoting formal employment.
| Particulars | Details |
|---|---|
| Current EPFO wage ceiling | ₹15,000 per month |
| Revised wage ceiling | ₹25,000 per month |
| Increase | ₹10,000 per month |
| Effective from | September 17, 2026 |
| Coverage impacted | Employees earning ₹15,000–₹25,000 per month |
| Key benefits | Provident Fund savings, EPS pension eligibility and EDLI insurance protection |
ALSO READ: EPFO launches official WhatsApp channel: Here's how to join, what members can expect
EPF, pension and insurance benefits
The expanded coverage will provide access to provident fund savings, pension benefits under the Employees’ Pension Scheme (EPS) and insurance protection under the Employees’ Deposit Linked Insurance Scheme (EDLI), subject to the respective scheme provisions.
The move will also align the statutory contribution and pensionable-wage framework more closely with prevailing wage levels.
MUST READ: Gen Z drives 79% of new formal job accounts in India in FY26: Quess report
Government outgo estimated at Rs 11,339 crore annually
The proposal underwent inter-ministerial consultations and was recommended by the Expenditure Finance Committee at its meeting on June 16, 2026. The annual government outgo from the measure is estimated at around Rs 11,339 crore, compared with existing annual budgetary support of approximately Rs 10,250 crore. Over five years, the estimated expenditure is around Rs 56,696 crore.
EPFO covers nearly 8 crore contributing members
EPFO administers three major social security schemes — the Employees’ Provident Fund (EPF), Employees’ Pension Scheme (EPS) and Employees’ Deposit Linked Insurance Scheme (EDLI).
According to the latest data cited by the government, EPFO has around 7.98 crore contributing members across approximately 7.68 lakh contributing establishments. The EPS provides pension benefits to around 82 lakh pensioners, while EDLI offers insurance protection linked to EPF membership.
Move aimed at expanding formal social security
The government said the higher ceiling is expected to support employment formalisation, worker retention and long-term retirement security. Wider EPFO coverage could provide employees with greater access to structured retirement savings and social security benefits, while employers could benefit from improved workforce stability and retention.
The Ministry of Labour and Employment and EPFO will now undertake the necessary statutory and administrative steps to implement the decision.