EPFO wage ceiling raised to ₹25,000; more employees gain PF and pension benefits

The Ministry of Labour and Employment has notified ₹25,000 per month as the wage ceiling under the Code on Social Security, 2020, effective 17 September 2026. The revision operationalizes the Union Cabinet's decision to raise the EPFO wage ceiling from ₹15,000, extending mandatory social security coverage to employees previously outside the threshold.

Employees covered under the revised ceiling will now be eligible for provident fund, pension and insurance benefits. They will contribute on a higher wage base, resulting in larger PF accumulations and potentially higher pension benefits. The enhanced contributions will earn interest at 8.25% for the current financial year.

Employers must contribute on the revised ₹25,000 ceiling, increasing statutory social security contributions. The government offers incentives of up to ₹3,000 per month under the PMVBRY Scheme to offset part of additional employer burden. Members can withdraw up to 75% of their EPF balance, with claims up to ₹5 lakh auto-settled within three days.