EPFO Wage Ceiling Raised from Rs. 15,000 to Rs. 25,000

The Union Cabinet has approved an increase in the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from Rs. 15,000 to Rs. 25,000 per month. The revised ceiling will come into effect from September 17, 2026, on the occasion of Vishwakarma Jayanti and Sewa Divas. The decision was announced by Union Minister for Labour & Employment Mansukh Mandaviya during a press briefing on 16th September, 2026. 

Employees Earning up to Rs. 25,000 to Come Within Mandatory Coverage 

According to the Ministry of Labour & Employment, employees drawing wages between Rs. 15,000 and Rs. 25,000 per month will become eligible for mandatory EPFO coverage, subject to applicable statutory provisions. 

The wage ceiling had remained unchanged at Rs. 15,000 since September 2014. The Ministry stated that the revised ceiling will expand access to statutory social security for additional employees. 

Coverage Under EPF, EPS and EDLI 

The expanded coverage will provide access, in accordance with applicable statutory and scheme provisions, to the three major components administered by EPFO: 

• Employees’ Provident Fund (EPF) – providing provident fund savings;
• Employees’ Pension Scheme (EPS) – providing pension-related protection; and
• Employees’ Deposit Linked Insurance Scheme (EDLI) – providing insurance-linked social security. 

Government Expenditure Estimated at Rs. 11,339 Crore Annually 

The proposal underwent inter-ministerial consultations and was recommended by the Expenditure Finance Committee (EFC) at its meeting held on June 16, 2026. 

The annual government outgo arising from the enhancement has been estimated at approximately Rs. 11,339 crore, compared with existing annual budgetary support of around Rs. 10,250 crore. The estimated expenditure over five years is approximately Rs. 56,696 crore. 

Implementation by Labour Ministry and EPFO 

The Ministry of Labour & Employment and EPFO will undertake the necessary statutory and administrative steps for implementing the decision. 

The Ministry stated that the revised ceiling is also intended to support the formalisation of employment and extend social security coverage to a larger section of workers under the applicable framework.