Last Updated on September 16, 2026 11:17 pm by INDIAN AWAAZ
AMN
The Union Cabinet has enhanced the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from 15 thousand rupees to 25 thousand rupees per month. Addressing the media in New Delhi after the Cabinet meeting today, Information and Broadcasting Minister Ashwini Vaishnaw said that the decision is expected to bring more than 51 lakh additional employees within the ambit of mandatory EPFO coverage, significantly widening social security protection for workers. The annual Government outgo on this is estimated at about 11 thousand 339 crore rupees. Mr Vaishanw said that the revised wage ceiling will come into effect from Vishwakarma Jayanti tomorrow.
The Minister said that the EPFO wage ceiling remained unchanged throughout the decade from 2004 to 2014, before being substantially enhanced to 15 thousand rupees in September 2014. Mr Vaishnaw highlighted that the present decision carries forward this approach by further raising the ceiling to 25 thousand rupees to reflect the sustained wage growth, rising incomes and a continued expansion of formal employment over the intervening years.
Our correspondent reports that the approval will expand access to provident fund savings, pension protection under the Employees’ Pension Scheme.
The decision to raise the wage ceiling marks another important step towards building an inclusive, resilient and future-ready social security architecture. At present, a fresh employee joining employment at a wage above 15 thousand rupees per month is not automatically covered under the EPF framework. Raising the ceiling to 25 thousand will bring a substantial segment of employees within the statutory social security framework. The revised wage ceiling will support stronger employee retention and a more stable formal workforce resulting in sustainable employment and higher productivity. The approval will expand access to provident fund savings, pension protection under the Employees’ Pension Scheme and insurance protection under the Employees’ Deposit Linked Insurance Scheme.