Cabinet Approves EPFO Wage Ceiling Hike to ₹25,000
What Happened
The Union Cabinet has approved raising the wage ceiling for mandatory EPFO coverage from ₹15,000 to ₹25,000 per month. The decision, announced by Ashwini Vaishnaw, is expected to bring over 51 lakh additional employees under mandatory provident fund, pension and insurance coverage. The revised limit will take effect from September 17, 2026.
Key Takeaways
This is one of the biggest social-security expansions in over a decade. Employees earning between ₹15,000 and ₹25,000 who were previously outside mandatory EPF coverage will now gain access to EPF, EPS (pension), and EDLI (insurance) benefits. The government estimates the measure will benefit more than 51 lakh workers and strengthen retirement security in India's formal workforce.