Cabinet raises EPFO wage ceiling to ₹25,000, expanding coverage to 51 lakh workers

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved raising the EPFO wage ceiling from ₹15,000 to ₹25,000 per month on 16 September 2026. The proposal, recommended by the Expenditure Finance Committee in June after inter-ministerial consultations, will bring over 51 lakh additional employees under mandatory EPFO coverage.

Employees earning between ₹15,000 and ₹25,000 monthly will now gain access to provident fund benefits, pension protection under the Employees' Pension Scheme, and insurance coverage under the Employees' Deposit Linked Insurance Scheme. The existing ceiling of ₹15,000 was set in September 2014.

The Government stated that minimum wages in several states and occupations have approached the ₹15,000 threshold, necessitating the update. The decision aims to strengthen retirement security, improve workforce stability and expand social security coverage across the formal sector, with estimated annual Government outgo of ₹11,339 crore.