Union Cabinet approves raising EPFO wage ceiling to ₹25,000 per month
In a press release, the Government said that this decision is expected to bring more than 51 lakh additional employees within the ambit of mandatory EPFO coverage
The Union Cabinet has authorized increasing the wage ceiling for mandatory EPFO coverage from ₹15,000 to ₹25,000 per month, as announced by Minister of Information and Broadcasting Ashwini Vaishnaw on September 16, 2026. This decision is anticipated to incorporate over 51 lakh additional employees within the scope of mandatory EPFO coverage, expanding access to provident fund savings, pension protection under the EPS, and insurance protection under the EDLI scheme.
The scheme is set to commence from September 17, coinciding with Vishwakarma Jayanti. The government's annual outgo is projected at ₹11,339 crore, compared to the current budgetary support of ₹10,250 crore. Employee and employer contributions towards the EPS will also escalate under the new wage ceiling. Union Labour Minister Mansukh Mandaviya stated that the average salary in private establishments is ₹23,000, according to a government survey, and more workers will gain benefits of pension, death insurance, and improved interest on their savings with the expansion of EPFO coverage.
Employers' contributions will rise by ₹600 per employee, with the employee's EPS contribution also increasing. Around one crore workers are expected to benefit from this decision.
Written by urgent.news from The Hindu's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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