The Union Cabinet on Wednesday, 16 September 2026, approved raising the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from ₹15,000 to ₹25,000 a month.
The revision, cleared on a proposal from the Ministry of Labour and Employment, is expected to bring more than 51 lakh additional workers within mandatory EPFO coverage. It is the first change to the ceiling since September 2014, when the limit rose from ₹6,500 to ₹15,000, a gap of 12 years.
Under the new threshold, employees earning between ₹15,000 and ₹25,000 a month, who were earlier outside automatic enrolment, will be brought into the EPF framework, subject to applicable rules. That widens access to provident fund savings, pension protection under the Employees’ Pension Scheme (EPS) and insurance under the Employees’ Deposit Linked Insurance Scheme (EDLI).
Information and Broadcasting Minister Ashwini Vaishnaw said the decision expands mandatory coverage and reflects changes in wage levels and the growth of formal employment. In its official statement, the government said the step ensures the social security framework “keeps pace with this progress” for a larger workforce.
The annual government outlay is estimated at about ₹11,339 crore, against existing budgetary support of about ₹10,250 crore, with a five-year cost of roughly ₹56,696 crore. The proposal was recommended by the Expenditure Finance Committee on 16 June 2026.
EPFO runs one of the world’s largest social security systems, with around 7.98 crore contributing members across about 7.68 lakh establishments. The revision follows a January 2026 Supreme Court direction asking the Centre and EPFO to decide on a revision within four months. TPB had earlier reported the Centre reopening the wage-ceiling review ahead of this decision. A formal notification will set the effective date and the contribution mechanics for employers and employees in the new band.
