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EPFO Wage Ceiling Increased from ₹15,000 to ₹25,000 | Union Cabinet Approval

EPFO Wage Ceiling Increased from ₹15,000 to ₹25,000 | Union Cabinet Approval
EPFO Wage Ceiling Increase from 15000 to 25000

EPFO WAGE CEILING INCREASED FROM ₹15,000 TO ₹25,000

Union Cabinet Approval – Ministry of Labour & Employment | PIB Press Release, 17.09.2026
Approved By Union Cabinet
Ministry Labour & Employment
Announced On 16th September 2026
Press Release Date 17th September 2026

New Wage Ceiling

₹25,000
Per month (revised from ₹15,000)

Additional Coverage

51+ Lakh
Employees to come under EPF

Annual Govt Outgo

₹11,339 Cr
Estimated budgetary support

Last Revision

September 2014
Ceiling raised to ₹15,000

Wage Ceiling Comparison

Existing Ceiling
₹15,000
Per month (since Sept 2014)
Revised Ceiling
₹25,000
Per month (approved 16.09.2026)

Key Highlights of the Decision

  • Cabinet Approval: The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the proposal of the Ministry of Labour & Employment to raise the wage ceiling for mandatory coverage under EPFO from ₹15,000 to ₹25,000 per month.
  • Current Scenario: At present, a new employee joining service on a monthly wage above ₹15,000 is not automatically covered under the EPF framework and may remain outside provident fund, pension, and insurance protection.
  • New Coverage: With the ceiling raised to ₹25,000, employees in the ₹15,000-₹25,000 wage band will come within the statutory social security net. This is expected to bring more than 51 lakh additional employees under mandatory coverage nationwide.
  • Benefits for Newly Covered Employees: Newly covered employees will get provident fund savings, pension under the Employees' Pension Scheme (EPS), and insurance cover under the Employees' Deposit Linked Insurance Scheme (EDLI).
  • Last Revision: The wage ceiling was last revised in September 2014, when it was raised to ₹15,000. The present revision brings the framework in line with the growth in wages and formal employment since then.
  • Recommendation: The proposal was recommended by the Expenditure Finance Committee on 16 June 2026.
  • Financial Outgo: The annual Government outgo is estimated at about ₹11,339 crore, against the existing budgetary support of about ₹10,250 crore. The estimated expenditure over five years is about ₹56,696 crore.
  • EPFO Coverage: EPFO currently serves around 7.98 crore contributing members in about 7.68 lakh contributing establishments, and about 82 lakh pensioners under EPS.

Benefits for Newly Covered Employees

Provident Fund Savings
Monthly PF contributions for long-term savings and retirement security.
Pension under EPS
Pension benefits under the Employees' Pension Scheme for post-retirement income.
Insurance under EDLI
Life insurance cover under the Employees' Deposit Linked Insurance Scheme.

Regional Impact – Mysuru

  • Regional Office, Mysuru: Covers the districts of Mysuru, Mandya, Chamarajanagar, and Kodagu.
  • Current Coverage: About 5,059 contributing establishments and 3,06,252 contributing members in the region.
  • Impact: The measure will extend assured social security to a large number of workers in the four districts.
  • Official Statement: Shri Shadakshara Gopala Reddy, Regional Provident Fund Commissioner-I, Mysuru, said the measure will also support formalisation, employee retention, and long-term retirement security.

Important Points to Note

  • New EPF Wage Ceiling: ₹25,000 per month (increased from ₹15,000).
  • Approved By: Union Cabinet chaired by Prime Minister Shri Narendra Modi.
  • Announced On: 16th September 2026.
  • Additional Coverage: Over 51 lakh employees nationwide to come under mandatory EPF coverage.
  • Benefits: Provident fund savings, pension under EPS, and insurance under EDLI.
  • Last Revision: September 2014 (ceiling raised to ₹15,000).
  • EFC Recommendation: Expenditure Finance Committee recommended the proposal on 16 June 2026.
  • Annual Govt Outgo: Approximately ₹11,339 crore.
  • Five-Year Expenditure: Approximately ₹56,696 crore.
  • EPFO Current Coverage: 7.98 crore contributing members, 7.68 lakh establishments, 82 lakh pensioners.

Download the Official Press Release or share this update:

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Frequently Asked Questions

What is the new EPFO wage ceiling?
The Union Cabinet has approved an increase in the EPFO wage ceiling from ₹15,000 to ₹25,000 per month.
When was this decision announced?
The decision was announced on 16th September 2026. The PIB press release was issued on 17th September 2026.
Who approved this increase?
The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, approved the proposal of the Ministry of Labour & Employment.
How many employees will benefit from this increase?
More than 51 lakh additional employees nationwide are expected to come under mandatory EPF coverage with the ceiling raised to ₹25,000.
What benefits will newly covered employees get?
Newly covered employees will get: (a) provident fund savings, (b) pension under the Employees' Pension Scheme (EPS), and (c) insurance cover under the Employees' Deposit Linked Insurance Scheme (EDLI).
When was the wage ceiling last revised?
The wage ceiling was last revised in September 2014, when it was raised to ₹15,000.
What is the financial impact of this decision?
The annual Government outgo is estimated at about ₹11,339 crore, against the existing budgetary support of about ₹10,250 crore. The estimated expenditure over five years is about ₹56,696 crore.
Who recommended this proposal?
The proposal was recommended by the Expenditure Finance Committee on 16 June 2026.
What is EPFO's current coverage?
EPFO currently serves around 7.98 crore contributing members in about 7.68 lakh contributing establishments, and about 82 lakh pensioners under EPS.
What is the impact in the Mysuru region?
The Regional Office, Mysuru covers Mysuru, Mandya, Chamarajanagar, and Kodagu districts, with about 5,059 contributing establishments and 3,06,252 contributing members. The measure will extend assured social security to a large number of workers in these four districts.