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Cabinet Raises EPFO Mandatory Wage Ceiling to ₹25,000

The change extends compulsory provident-fund, pension and life-insurance coverage to about 51 lakh more formal-sector workers.

Overview

  • The Union Cabinet approved the raise from ₹15,000 to ₹25,000 on Wednesday, September 16, 2026, making employees earning up to ₹25,000 per month mandatorily eligible for EPFO schemes.
  • The government estimates roughly 51 lakh additional members will gain access to the Employees’ Provident Fund, Employees’ Pension Scheme and Employees’ Deposit Linked Insurance at entry, expanding statutory social security.
  • Officials project annual budgetary support for EPFO will rise to about ₹11,339 crore from roughly ₹10,250 crore, reflecting higher employer and state outlays tied to the expanded base.
  • Major trade unions welcomed the move but criticized it as too small and late, demanding a ₹30,000 ceiling or abolition of any cap and clear rules that employers must pay statutory contributions above employees’ agreed pay.
  • Key implementation questions remain, including whether EDLI benefits will be increased, how employers will treat mandatory EPFO contributions within cost-to-company, and how EPFO will register and process the newly covered workers.