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Cabinet enhances EPFO wage ceiling from Rs 15,000 to Rs 25,000, strengthens retirement security for workers
EPFO data show around 7.98 crore contributing members across about 7.68 lakh contributing establishments, while EPS provides pension benefits to around 82 lakh pensioners.
New Delhi: In a move aimed at strengthening retirement security for workers, the Centre Wednesday gave the green signal to a labour ministry proposal to increase the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from Rs 15,000 to Rs 25,000 per month.
Currently, employees who join a job with a monthly wage above Rs 15,000 are not automatically covered by the EPF and may not get mandatory provident fund, pension and insurance benefits.
The decision taken at the Cabinet meeting chaired by Prime Minister Narendra Modi 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 operates one of the world’s largest social security systems, administering the Employees’ Provident Fund, Employees’ Pension Scheme and Employees’ Deposit Linked Insurance (EDLI) Scheme.
The latest EPFO data show around 7.98 crore contributing members across about 7.68 lakh contributing establishments, while the EPS provides pension benefits to around 82 lakh pensioners. EDLI provides insurance protection linked to EPF membership.
श्रमेव जयते!
माननीय प्रधानमंत्री श्री नरेंद्र मोदी जी का हृदय से आभार। आज उनके नेतृत्व में केंद्रीय मंत्रिमंडल ने EPFO की wage ceiling को ₹15,000 से बढ़ाकर ₹25,000 प्रतिमाह करने का महत्वपूर्ण निर्णय लिया है।
यह निर्णय देश के श्रमिकों को सामाजिक सुरक्षा का व्यापक कवच प्रदान… pic.twitter.com/GzacWuKXco
— Dr Mansukh Mandaviya (@mansukhmandviya) September 16, 2026
“This decision will not only provide a broader shield of social security to the country’s workers but will also accelerate the formalisation of employment,” Union Labour and Employment Minister Mansukh Mandaviya posted, welcoming the Cabinet decision.