EPFO Wage Ceiling Raised From Rs 15,000 To Rs 25,000, 51 Lakh More Employees To Benefit

After prolonged consultations, the Union cabinet today cleared EPFO(Employees Provident fund organisation) wage ceiling enhanced from Rs 15,000 to 25,000 per month.The propsoal underwent detailed inter-ministerial consultation and was recommended by the Expenditure Finance Committee in its meeting held on 16th june 2026.

Union Cabinet approves the increase in EPFO wage ceiling from Rs 15,000 to Rs 25,000 (Img: Pinterest)

New Delhi: The Union cabinet, today,chairmed by the Prime Minister Narendra Modi,has approved the proposal of the Ministry of labour and Employment to enhance the wage ceiling for mandatory coverage under the Employees' Provident Fund Organisation(EPFO) from Rs 15,000 to Rs 25,000 per month.

51 Lakh Additional Employees Expected To Come Under EPFO

According to Labour Ministry, the decision is expected to bring more than 51 lakh additional employees within the ambit of mandatory EPFO coverage, significantly widening social security protection for workers.

EPFO Wage Ceiling Was Last Revised In 2014

The Ministry said the EPFO wage ceiling remained unchanged throughout the decade from 2004 to 2014, before being substantially enhanced to rs 15,000 in September 2014.

The present decision,it said,carries forward this approach by further raising the ceiling to rs 25,000 to reflect the sustained wage growth, rising incomes and a continued expansion of formal empolyment over the intervening years.

More Workers To Get Provident Fund And Pension Benefits

It said the approval will expand access to provident fund savings, pension protection under the Employees' Pension Scheme(EPS) and insurance protection under the Employees' deposit Linked Insurance scheme(EDLI), in accordance with the applicable scheme provisions.

New Ceiling To Reflect Changing Wage Levels

It will also enable the statutory contribution and pensionable-wage framewrok to better reflect prevailing wage levels, the Ministry added.