What does the latest revision to the EPFO wage ceiling entail? | Explained
The Indian government has raised the mandatory wage ceiling for EPFO coverage from ₹15,000 to ₹25,000 per month. This policy change is expected to bring millions of additional workers under the social security umbrella, though trade unions have criticized the move as insufficient.
Why it matters
This adjustment significantly expands the social safety net for formal sector employees in India, impacting both employer costs and worker retirement benefits.
The story so far: The Union Cabinet, which met in New Delhi on Wednesday (September 16, 2026), approved a long-pending demand for raising the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) to ₹25,000 a month from ₹15,000. The Union Labour Ministry had made the proposal to increase the wage ceiling. The last time the ceiling was increased was in September 2014. The employers’ organisations, largely, welcomed the announcement and sought the Union Government’s help to implement the decision as the employers’ share to the Provident Fund will increase. The trade unions described the increase as “too little and too late” .
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