The EPFO wage ceiling will rise from Rs.15,000 to Rs.25,000 per month after the Union Cabinet approved the proposal on September 16, 2026. The decision is expected to bring more than 51 lakh additional employees under mandatory Employees’ Provident Fund Organisation coverage.
EPFO coverage to expand for employees earning up to Rs.25,000
According to the Press Information Bureau (PIB), the proposal was approved by the Union Cabinet chaired by Prime Minister Narendra Modi. The higher threshold will cover a larger section of employees earning between Rs.15,000 and Rs.25,000 per month under the statutory social security framework.
The change will expand access to provident fund savings, pension benefits under the Employees’ Pension Scheme (EPS) and insurance protection through the Employees’ Deposit Linked Insurance Scheme (EDLI), subject to applicable scheme provisions.
The wage ceiling was last increased to Rs.15,000 in September 2014 after remaining unchanged during the 2004–2014 period. The latest increase is intended to align the coverage threshold with the wage and income levels that have developed since the previous revision.
Government outgo estimated at Rs.11,339 crore annually
The proposal was examined through inter-ministerial consultations and received the recommendation of the Expenditure Finance Committee at its meeting on June 16, 2026.
The annual government expenditure under the revised ceiling is estimated at around Rs.11,339 crore, compared with existing annual budgetary support of about Rs.10,250 crore. The estimated expenditure over five years is approximately Rs.56,696 crore.
EPFO currently has around 7.98 crore contributing members across approximately 7.68 lakh contributing establishments. The EPS provides pension benefits to around 82 lakh pensioners, while EDLI provides insurance protection linked to EPF membership.
The Ministry of Labour & Employment and EPFO will now undertake the required statutory and administrative steps to implement the Cabinet-approved change.
Q1. What is the new EPFO wage ceiling?
The EPFO wage ceiling for mandatory coverage has been increased from Rs.15,000 to Rs.25,000 per month.
Q2. How many additional employees could benefit from the change?
More than 51 lakh additional employees are expected to come under mandatory EPFO coverage.
Q3. When was the EPFO wage ceiling last increased?
The ceiling was last increased to Rs.15,000 in September 2014.
Q4. What social security benefits will the expanded coverage provide?
The expanded framework will provide access to EPF savings, pension protection under EPS and insurance protection under EDLI, subject to applicable scheme provisions.
Q5. How much will the government spend under the revised EPFO ceiling?
The estimated government outgo is around Rs.11,339 crore annually and approximately Rs.56,696 crore over five years.
