EPFO wage ceiling raised to ₹25,000 for better social security net

Government raises EPF wage ceiling to ₹25,000 from ₹15,000, expanding mandatory social-security coverage to over 51 lakh additional employees

The government on Wednesday raised the wage ceiling for mandatory Employees’ Provident Fund (EPF) coverage

to ₹25,000 a month from ₹15,000, bringing more than 5.1 million additional employees under the statutory social security framework.

The move to have mandatory provident fund coverage for those earning upto ₹25,000 a month also raises the contribution obligation of employers.

The revised ceiling will take effect from September 17, Labour and Employment Minister Mansukh Mandaviya said at a press briefing.

The decision will extend mandatory coverage to a larger section of employees in the ₹15,000-25,000 monthly wage band, who are currently not automatically covered when they join employment at wages above the existing ceiling.