The Ministry of Labour & Employment (MoLE), on September 16, 2026, announced that the Union Cabinet has approved enhancement of the wage ceiling for mandatory EPFO coverage from ₹15,000 to ₹25,000 per month. The decision is expected to bring more than 51 lakh additional employees within mandatory EPFO coverage, thereby expanding access to statutory social security.
The enhanced ceiling will bring employees earning between ₹15,000 and ₹25,000 per month within the mandatory EPF framework, subject to applicable provisions. This will expand access to Employees’ Provident Fund (EPF), Employees’ Pension Scheme (EPS) and Employees’ Deposit Linked Insurance Scheme (EDLI). The Government estimates annual outgo at approximately ₹11,339 crore, compared with existing annual budgetary support of about ₹10,250 crore, with expenditure over five years estimated at approximately ₹56,696 crore.
The Ministry of Labour & Employment and EPFO will undertake the necessary statutory and administrative steps for implementation. The proposal was recommended by the Expenditure Finance Committee on June 16, 2026, and is intended to widen formal social-security coverage, strengthen retirement and insurance protection, and align the EPFO framework with prevailing wage levels.
[Release ID: 2310811]
