The Union Cabinet has approved a major increase in the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO), raising the limit from ₹15,000 to ₹25,000 per month.

The decision, announced on September 16, 2026, is expected to bring more than 51 lakh additional employees within the scope of mandatory EPFO coverage. The move expands access to social security benefits for workers whose wages were previously above the existing ₹15,000 threshold.

Union Minister Ashwini Vaishnaw announced the Cabinet decision during a press briefing. The previous EPFO wage ceiling of ₹15,000 had been in place since September 2014.

The higher ceiling means eligible employees earning up to ₹25,000 per month can come under mandatory EPFO coverage, subject to the applicable rules. EPFO-linked social security includes provident fund benefits, while the wider system also covers pension and insurance provisions.

The Government expects the change to significantly expand the formal social security net. Reports indicate that the increased coverage will also affect contributions towards the Employees’ Pension Scheme (EPS), as applicable.

The announcement comes amid broader efforts to expand formal employment and social security coverage. The Government has also highlighted wider EPFO coverage under the Labour Code framework.

For employees, the revised ceiling could increase access to long-term retirement savings and related social-security benefits. Employers will also need to account for the revised coverage requirements once the new framework takes effect.

The move marks the first major increase in the EPFO mandatory wage ceiling from ₹15,000 since 2014.