Overview
- The Union Cabinet approved the raise from ₹15,000 to ₹25,000, effective September 17, 2026, expanding mandatory EPFO coverage.
- The government estimates roughly 51 lakh additional employees will enter EPF, giving them access to provident fund balances, EPS pensions and EDLI insurance under existing schemes.
- Officials put the extra annual fiscal cost at about ₹11,339 crore and estimate five‑year expenditure of around ₹56,696 crore for the wider coverage.
- For workers whose PF was ceiling‑based, employee deductions can rise by up to ₹1,200 a month under the same 12% contribution rate, lowering near‑term take‑home pay while boosting retirement savings.
- Key operational details remain unissued, including any new EDLI cap and precise payroll treatment for varied salary structures, and large informal and gig‑sector workforces remain outside the reform's reach.