Cabinet approves raising EPFO wage ceiling from Rs 15,000 to Rs 25,000
The Indian Union Cabinet has increased the mandatory EPFO wage ceiling from Rs 15,000 to Rs 25,000 per month. This policy change aims to expand social security coverage to over 51 lakh additional employees.
Why it matters
This expansion significantly broadens the social safety net for millions of workers, reflecting adjustments for wage growth and formal employment trends.
The Union Cabinet on Wednesday approved the Ministry of Labour & Employment’s proposal to increase the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from Rs 15,000 to Rs 25,000 a month.The move is expected to bring more than 51 lakh additional employees under mandatory EPFO coverage, expanding the social security net for workers, according to the Ministry of Labour & Employment.The EPFO wage limit had remained unchanged between 2004 and 2014. It was raised to Rs 15,000 in September 2014.
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