The Finance Ministry has cleared a proposal to raise the mandatory EPF wage ceiling from ₹15,000 to ₹25,000 a month, subject to Cabinet approval, a change that would bring more salaried workers under provident fund and pension coverage.
The ceiling was last revised in September 2014, when it rose from ₹6,500 to ₹15,000. Under the new limit, employees with a basic salary between ₹15,001 and ₹25,000 would come under mandatory Employees’ Provident Fund coverage and qualify for the Employees’ Pension Scheme.
The Finance Ministry has approved the proposal to increase the mandatory wage ceiling under EPF from the existing ₹15,000 to ₹25,000 per month. An earlier plan had reportedly proposed a ₹30,000 ceiling.
Under the Employees’ Pension Scheme, the employer deposits 8.33% of basic salary while the central government contributes 1.16%. The Union Budget has allocated ₹11,144 crore for EPS in 2026-27. The provisions apply to establishments with 20 or more workers, while smaller firms can register voluntarily. Central government employees, who fall under separate pension structures, are unaffected.
The rollout will not be immediate after Cabinet clearance. Reports put the likely effective date at 1 April 2027, subject to the Cabinet’s final timeline, to allow businesses to adjust payroll systems and compliance workflows. In January 2026, the Supreme Court directed the Centre and EPFO to decide on revising the wage ceiling within four months, after a public interest litigation flagged that the unchanged limit had excluded a large section of workers from the EPFO net.
