Bhubaneswar, Oct 5 [UDN}:The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a major revision of the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO), raising it from ₹15,000 to ₹25,000 per month. The revised ceiling came into effect from September 17, 2026.
Under the new provision, employees earning between ₹15,000 and ₹25,000 per month in establishments covered by the EPFO framework will come under mandatory social-security coverage. The government expects the move to bring more than 51 lakh additional employees within the EPFO net.
The expansion will provide eligible workers access to statutory benefits associated with Employees’ Provident Fund (EPF), Employees’ Pension Scheme (EPS) and Employees’ Deposit Linked Insurance Scheme (EDLI), thereby widening retirement, pension and insurance protection.
The wage ceiling had last been increased to ₹15,000 in September 2014, and had remained unchanged for 12 years. The latest revision has been presented by the government as an adjustment to rising wage levels and the expansion of formal employment.
The government estimates that the enhanced coverage will involve an additional annual expenditure of around ₹11,339 crore, while the estimated expenditure over five years is approximately ₹56,696 crore.
The decision is expected to significantly expand the statutory social-security framework for employees in the ₹15,000–₹25,000 monthly wage bracket, while strengthening access to long-term retirement savings, pension and insurance benefits.
Leave a Reply