The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved raising the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from Rs.15,000 to Rs.25,000 per month, a move expected to bring more than 51 lakh additional employees under mandatory EPFO coverage.
The EPFO wage ceiling remained unchanged throughout the decade from 2004 to 2014, before being substantially 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 the continued expansion of formal employment over the intervening years.
At present, a fresh employee joining employment at a wage above Rs.15,000 per month is not automatically covered under the EPF framework and may remain outside mandatory provident fund, pension and associated insurance protection.
The Union Cabinet has approved the enhancement of the EPF wage ceiling from ₹15,000 to ₹25,000 per month.
Effective from Vishwakarma Jayanti, 2026 the decision will bring more employees under mandatory EPF coverage.#ExpandingSocialSecurity pic.twitter.com/lsPr2vaVGh— EPFO (@officialepfo) September 16, 2026
Raising the ceiling to Rs.25,000 will bring a substantial segment of employees in the Rs.15,000–Rs.25,000 wage band within the statutory social security framework.
The approval will expand access to provident fund savings, pension protection under the Employees’ Pension Scheme (EPS) and insurance protection under the Employees’ Deposit Linked Insurance Scheme (EDLI), in accordance with the applicable scheme provisions. It will also enable the statutory contribution and pensionable-wage framework to better reflect prevailing wage levels.
▪️#Cabinet approves enhancement of EPFO wage ceiling from Rs.15,000 to Rs.25,000 per month.
▪️The decision is expected to bring more than 51 lakh additional employees within the ambit of mandatory EPFO coverage.
▪️The annual Government outgo is estimated at about Rs.11,339… pic.twitter.com/Tx7jR0O2n7
— PIB India (@PIB_India) September 16, 2026
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.
EPFO today operates one of the world’s largest social security systems, administering the Employees’ Provident Fund (EPF), Employees’ Pension Scheme (EPS) and Employees’ Deposit Linked Insurance Scheme (EDLI).
The latest EPFO data show around 7.98 crore contributing members across about 7.68 lakh contributing establishments, while the EPS provides pension benefits to around 82 lakh pensioners. EDLI provides insurance protection linked to EPF membership.
The proposal underwent detailed inter-ministerial consultations and was recommended by the Expenditure Finance Committee in its meeting held on 16 June 2026.
