+
EPFO Wage Ceiling Raised to Rs 25,000 per Month
ECONOMY & POLICY

EPFO Wage Ceiling Raised to Rs 25,000 per Month

The Union Cabinet has approved the proposal to increase the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from Rs 15,000 to Rs 25,000 per month. The move is expected to bring over 51 lakh additional employees under the EPFO social security framework.

The revised ceiling will extend access to provident fund savings, pension benefits under the Employees’ Pension Scheme (EPS) and insurance coverage under the Employees’ Deposit Linked Insurance Scheme (EDLI) to a wider section of employees earning between Rs 15,000 and Rs 25,000 per month.

The EPFO wage ceiling was last revised in September 2014, when it was increased to Rs 15,000. The latest enhancement aims to align the social security framework with rising wages, increased incomes and the expansion of formal employment across sectors.

The decision is expected to support employment formalisation, improve worker retention and strengthen long-term retirement security. For employers, wider social security coverage could contribute to workforce stability and improved employee benefits.

The proposal followed inter-ministerial consultations and was recommended by the Expenditure Finance Committee in its meeting held on 16 June 2026. The annual government expenditure is estimated at around Rs 11,339 crore, compared with the existing annual budgetary support of about Rs 10,250 crore. The estimated expenditure over five years is approximately Rs 56,696 crore.

EPFO currently administers the Employees’ Provident Fund (EPF), Employees’ Pension Scheme (EPS) and Employees’ Deposit Linked Insurance Scheme (EDLI), providing social security benefits to millions of workers and pensioners across India.

The Ministry of Labour & Employment and EPFO will undertake the required statutory and administrative measures for implementing the revised wage ceiling.

The Union Cabinet has approved the proposal to increase the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from Rs 15,000 to Rs 25,000 per month. The move is expected to bring over 51 lakh additional employees under the EPFO social security framework.The revised ceiling will extend access to provident fund savings, pension benefits under the Employees’ Pension Scheme (EPS) and insurance coverage under the Employees’ Deposit Linked Insurance Scheme (EDLI) to a wider section of employees earning between Rs 15,000 and Rs 25,000 per month.The EPFO wage ceiling was last revised in September 2014, when it was increased to Rs 15,000. The latest enhancement aims to align the social security framework with rising wages, increased incomes and the expansion of formal employment across sectors.The decision is expected to support employment formalisation, improve worker retention and strengthen long-term retirement security. For employers, wider social security coverage could contribute to workforce stability and improved employee benefits.The proposal followed inter-ministerial consultations and was recommended by the Expenditure Finance Committee in its meeting held on 16 June 2026. The annual government expenditure is estimated at around Rs 11,339 crore, compared with the existing annual budgetary support of about Rs 10,250 crore. The estimated expenditure over five years is approximately Rs 56,696 crore.EPFO currently administers the Employees’ Provident Fund (EPF), Employees’ Pension Scheme (EPS) and Employees’ Deposit Linked Insurance Scheme (EDLI), providing social security benefits to millions of workers and pensioners across India.The Ministry of Labour & Employment and EPFO will undertake the required statutory and administrative measures for implementing the revised wage ceiling.

Related Stories

Gold Stories

Next Story
Infrastructure Transport

Maharashtra to Get Rs 270 Billion Shipbuilding Cluster

Mazagon Dock Shipbuilders Ltd (MDL) will invest around Rs 27,000 crore to develop a greenfield shipbuilding cluster at Dighi Port in Maharashtra’s Raigad district. The project is expected to create nearly 90,000 employment opportunities, according to the state government.MDL has signed a memorandum of understanding (MoU) with National Shipbuilding and Heavy Industries Park Maharashtra Ltd (NSHIPML) for the development of the project in the presence of Maharashtra Chief Minister Devendra Fadnavis.Under the agreement, MDL aims to establish an annual shipbuilding capacity of at least 2 million ..

Next Story
Infrastructure Transport

Railways Opens Five Gati Shakti Cargo Terminals in Gujarat

Union Minister for Railways Shri Ashwini Vaishnaw inaugurated, dedicated to the nation and laid the foundation stone for five Gati Shakti Cargo Terminals (GCTs) in Gujarat, strengthening the state’s freight handling capacity and connectivity with markets across the country. The Shivlakha GCT in Kachchh was inaugurated, while the GCTs at Bhimasar in Kachchh, Devaliya in Morbi and Chandisar in Banaskantha were dedicated to the nation. The foundation stone was also laid for the upcoming GCT at Linch in Mahesana. During the event, the Railway Minister flagged off a salt-loaded freight train fr..

Next Story
Technology

Panasonic Industry Showcases Advanced Tech Solutions at Electronica India

Panasonic Industry, a division of Panasonic Life Solutions India (PLSIND), showcased its portfolio of advanced technology components and solutions for industrial, automotive, railways, telecom and digital infrastructure sectors at Electronica India 2026 held in Bengaluru. At the exhibition, Panasonic Industry introduced technologies including Fine Conductive Material, EDLC (Electric Double Layer Capacitor), BLDC motors, DC pumps and polymer capacitors for data centre applications. The company also displayed electro-mechanical and passive components for automotive applications, including ADAS ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code