Cabinet Raises EPFO Wage Ceiling to Rs 25,000, Expanding Social Security

The Union Cabinet has approved raising the mandatory wage ceiling for coverage under the Employees Provident Fund Organisation from Rs 15,000 to Rs 25,000 per month, a decision announced by Union Ministers Ashwini Vaishnaw and Mansukh Mandaviya. The revision, effective from September 17, 2026, is expected to bring an additional 51 lakh employees under the statutory social security framework, though one minister cited a broader range of up to 1 crore beneficiaries. The decision, chaired by Prime Minister Narendra Modi, marks the first increase in the EPFO wage ceiling in 12 years, with the previous revision occurring in September 2014. Under the new rules, employees earning up to Rs 25,000 per month will be automatically covered by mandatory provident fund, pension, and insurance schemes. Workers earning above this threshold may continue to contribute voluntarily. The government estimates the annual financial implication of the measure at approximately Rs 11,339 crore, compared to the existing annual budgetary support of about Rs 10,250 crore. The estimated expenditure over five years is projected at around Rs 56,696 crore.