Cabinet Approves EPFO Wage Ceiling Hike to ₹25,000 per Month
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved raising the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from ₹15,000 to ₹25,000 per month.
This landmark decision will bring over 51 lakh additional employees under EPFO’s ambit, expanding access to provident fund savings, pension benefits, and insurance protection.Workers earning between ₹15,000 and ₹25,000 per month will now be automatically covered under the EPF framework, ensuring wider social security coverage. The move extends benefits under the Employees’ Provident Fund Scheme (EPF), Employees’ Pension Scheme (EPS), and Employees’ Deposit Linked Insurance Scheme (EDLI).
The wage ceiling was last revised in 2014, when it was raised from ₹6,500 to ₹15,000. The latest revision reflects rising incomes, sustained wage growth, and the expansion of formal employment.The government estimates an annual outgo of ₹11,339 crore, with expenditure over five years projected at ₹56,696 crore. EPFO currently has nearly 7.98 crore contributing members across 7.68 lakh establishments, with EPS providing pension benefits to around 82 lakh pensioners.
The Ministry of Labour and Employment and EPFO will take statutory and administrative steps to implement the decision, supporting employment formalisation, worker retention, and long‑term retirement security.