The Union Cabinet has lifted the wage ceiling for mandatory EPFO coverage from ₹15,000 to ₹25,000 a month, the first revision since 2014, widening social security.

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• The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Labour Ministry's proposal on September 16, 2026.
• The wage ceiling for mandatory EPFO coverage rises from ₹15,000 to ₹25,000 per month.
• Labour Minister Mansukh Mandaviya announced the decision and said it takes effect from September 17, Vishwakarma Jayanti and Sewa Divas.
• The government expects more than 51 lakh additional employees to come under mandatory EPFO coverage.
• The ceiling was last raised to ₹15,000 in September 2014, after remaining unchanged for the decade from 2004 to 2014.
• Before this change, a fresh employee joining at a wage above ₹15,000 a month was not automatically covered under the EPF framework.
• Covered workers gain access to provident fund savings, pension under the Employees' Pension Scheme and insurance under the EDLI scheme.
• EPFO currently has about 7.98 crore contributing members across roughly 7.68 lakh establishments, and EPS supports around 82 lakh pensioners.
• The contribution rate stays at 12% for employees and employers; only the base wage ceiling changes.
• The maximum monthly employee contribution on the capped wage could rise from ₹1,800 to ₹3,000, so take-home pay may fall for some workers.
• The government says the revision reflects sustained wage growth, rising incomes and expanding formal employment.