The Union Cabinet has raised the mandatory EPFO wage ceiling from ₹15,000 to ₹25,000 a month, with more than 51 lakh additional employees expected to come under mandatory coverage from September 17, 2026.
The Union Cabinet has approved an increase in the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation from ₹15,000 to ₹25,000 per month. The revised ceiling will take effect from September 17, 2026, and is expected to bring more than 51 lakh additional employees within mandatory EPFO coverage.
Announced by Union Minister for Labour and Employment Mansukh Mandaviya, the decision expands the threshold for employees entering covered establishments to include those earning between ₹15,000 and ₹25,000 a month, subject to applicable statutory and scheme provisions.
The wage ceiling had remained unchanged since September 2014, when it was increased to ₹15,000. The Government said the latest revision will widen statutory social security coverage in line with changes in wage levels.
Eligible employees will have access, under applicable provisions, to EPFO’s three major schemes — the Employees’ Provident Fund, Employees’ Pension Scheme and Employees’ Deposit Linked Insurance Scheme. The expansion is also expected to support formalisation of employment and widen access to retirement, pension and insurance-linked social security.
The proposal followed inter-ministerial consultations and was recommended by the Expenditure Finance Committee at its June 16, 2026 meeting. The Government’s additional annual outgo resulting from the higher ceiling is estimated at around ₹11,339 crore, compared with existing annual budgetary support of about ₹10,250 crore. Estimated expenditure over five years is approximately ₹56,696 crore.
The Government expects wider social security coverage to support employee retention and workforce stability. For employers, the revision will increase the number of workers covered by the statutory EPFO framework.
The Ministry of Labour and Employment and EPFO will undertake the statutory and administrative measures required to implement the revised wage ceiling.
The decision expands mandatory social security coverage as the Government seeks to increase formal employment and widen access to provident fund, pension and insurance benefits.
