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EPFO wage ceiling raised from INR 15,000 to INR 25,000 per month

The Union Cabinet has approved raising the EPFO wage ceiling for mandatory coverage from ₹15,000 to ₹25,000 per month, a significant social security reform expected to bring more than 51 lakh additional employees under mandatory EPFO coverage. The decision will extend statutory social security benefits to employees earning between ₹15,000 and ₹25,000 per month by providing access to provident fund savings, pension benefits under the Employees’ Pension Scheme (EPS), and insurance coverage under the Employees’ Deposit Linked Insurance Scheme (EDLI).

The revision reflects sustained wage growth, rising incomes, and the continued expansion of formal employment since the last wage-ceiling revision in 2014.

The Government expects the measure to further promote the formalisation of employment, strengthen worker retention, and enhance long-term retirement security. The proposal is estimated to entail an annual Government outgo of approximately ₹11,339 crore, and the Ministry of Labour & Employment and the EPFO will undertake the necessary statutory and administrative steps for its implementation.

Please refer to the press release below:

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