EPFO Coverage Expanded as Wage Limit Rises to ₹25,000

New Delhi, September 16, 2026 The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved an increase in the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from ₹15,000 to ₹25,000 per month. The decision is expected to bring more than 51 lakh additional employees under mandatory EPFO coverage, widening access to provident fund savings, pension benefits and insurance protection. Under the existing system, employees joining a job with monthly wages above ₹15,000 are not automatically covered by the Employees’ Provident Fund (EPF) framework. With the revised ceiling, workers earning between ₹15,000 and ₹25,000 a month will come under the statutory social security system, subject to applicable provisions. The expanded coverage will include benefits under the Employees’ Provident Fund Scheme, Employees’ Pension Scheme (EPS) and Employees’ Deposit Linked Insurance Scheme (EDLI). The wage ceiling was last revised in September 2014, when it was increased from ₹6,500 to ₹15,000 per month. The government said the latest revision reflects sustained wage growth, rising incomes and the expansion of formal employment over the past decade. It also expects the move to support employment formalisation, worker retention and long-term retirement security by extending portable and assured social security protection to a larger section of the formal workforce. The proposal was recommended by the Expenditure Finance Committee on June 16, 2026, following inter-ministerial consultations. The annual government outgo is estimated at around ₹11,339 crore, while expenditure over five years is projected at approximately ₹56,696 crore. EPFO currently has around 7.98 crore contributing members across about 7.68 lakh contributing establishments, while the EPS provides pension benefits to around 82 lakh pensioners. The Ministry of Labour and Employment and EPFO will now undertake the required statutory and administrative measures to implement the decision. The higher wage ceiling is expected to widen the formal social security net and bring millions of additional workers within the EPFO framework, strengthening their access to savings, pension and insurance-linked protection.