Cabinet raises EPFO wage ceiling to Rs 25,000; 51 lakh employees to benefit

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The revision follows a 12-year gap and reflects sustained wage growth, rising incomes and continued expansion of formal employment, the government said

By PTI

Updated - September 16, 2026 at 05:49 PM. | New Delhi

The Union Cabinet approved raising the wage ceiling for mandatory EPFO coverage to Rs 25,000 per month from Rs 15,000. The decision is expected to bring more than 51 lakh additional employees under EPFO coverage.

The Union Cabinet on Wednesday approved a proposal to raise the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) to Rs 25,000 per month from Rs 15,000.

Wage ceiling raised after 12 years

The wage ceiling revision is taking place after 12 years.

The decision is expected to bring more than 51 lakh additional employees within the ambit of mandatory EPFO coverage, significantly widening social security protection for workers, Information and Broadcasting Minister Ashwini Vaishnaw said at a press briefing.

The EPFO wage ceiling remained unchanged from 2004 to 2014 and was enhanced to Rs 15,000 in September 2014.

The present decision carries forward this approach by further raising the ceiling to Rs 25,000 to reflect sustained wage growth, rising incomes and continued expansion of formal employment over the intervening years, an official release said.

Government expenditure

The annual government outgo is estimated at about Rs 11,339 crore against the existing annual budgetary support of about Rs 10,250 crore.

The estimated expenditure over five years is approximately Rs 56,696 crore.

Published on September 16, 2026

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