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Under the changed ceiling, employees earning between Rs 15,000 and Rs 25,000 a month will be included within compulsory EPFO coverage, subject to applicable provisions. The move will broaden access to provident fund savings, pension benefits and insurance protection for a wider section of the formal workforce.
The Union Cabinet has approved a massive rise in the wage ceiling for compulsory inclusion under the Employees’ Provident Fund Organisation (EPFO), increasing it from Rs 15,000 to Rs 25,000 per month. The order, approved on September 16, is slated to include more than 51 lakh extra employees under the statutory social security framework.
More Employees Included Under EPFO
Under the changed ceiling, employees earning between Rs 15,000 and Rs 25,000 a month will be included within compulsory EPFO coverage, subject to applicable provisions. The move will broaden access to provident fund savings, pension benefits and insurance protection for a wider section of the formal workforce.
The wage threshold had last been raised to Rs 15,000 in September 2014. The government said the recent revision takes into account changes in wages, incomes and the expansion of formal employment over the past decade.
EPF, Pension And Insurance Benefits
The improved ceiling will broaden statutory social security ambit to employees who were earlier outside compulsory EPFO enrolment because their wages more the earlier threshold.
The advantages covered under the EPFO framework include Employees’ Provident Fund (EPF) savings, pension protection through the Employees’ Pension Scheme (EPS), and insurance cover under the Employees’ Deposit Linked Insurance Scheme (EDLI), according to the government.
The move is also expected to bolster employment formalisation by including more workers into a structured social security system.
Government Estimation
The proposal was reviewed through inter-ministerial consultations and recommended by the Expenditure Finance Committee in June 2026. The government analyses that the annual outgo linked with the order will be around Rs 11,339 crore, compared with existing annual budgetary support of approximately Rs 10,250 crore. The estimated expenditure over five years is about Rs 56,696 crore.
EPFO Coverage
EPFO is among India's largest social security institutions. Government data mentioned in the announcement predicts around 7.98 crore contributing members across approximately 7.68 lakh contributing establishments. The Employees’ Pension Scheme offers pension benefits to around 82 lakh pensioners.
The Ministry of Labour and Employment and EPFO will now conduct the required statutory and administrative measures to execute the changed wage ceiling.