Overview
- The Union Cabinet approved the increase to ₹25,000 and the government set the change to take effect from Vishwakarma Day, September 17, 2026.
- The government estimates roughly 51 lakh additional employees will come under mandatory EPF, EPS and EDLI protections because wages up to ₹25,000 are now covered.
- For workers at the ceiling the statutory 12% employee contribution could rise by about ₹1,200 a month, which will lower near‑term take‑home pay but raise retirement savings.
- Officials say the revision will raise annual government support to about ₹11,339 crore and will increase employer contributions, though detailed scheme rules and EDLI or pension calculations are yet to be notified.
- The move brings formal‑sector coverage closer to current wages but leaves most informal and gig workers outside EPFO and renews calls for a clear, indicator‑based mechanism for periodic ceiling revisions.