The Union Cabinet has approved an increase in the mandatory EPFO coverage wage ceiling from ₹15,000 to ₹25,000 per month, expanding social security coverage to an estimated 51 lakh additional employees.
New Delhi: In a major decision aimed at expanding social security coverage for workers, the Union Cabinet has approved an increase in the wage ceiling for mandatory Employees’ Provident Fund Organisation (EPFO) coverage from ₹15,000 to ₹25,000 per month.
The decision is expected to bring more than 51 lakh additional employees under mandatory EPFO coverage, giving a larger section of India’s workforce access to provident fund, pension and other social security benefits.
The Cabinet’s decision marks a significant revision in the EPFO wage ceiling, which had previously stood at ₹15,000 per month. The government said the move is aimed at strengthening retirement security and expanding the formal social security net for employees.
Over 51 Lakh Additional Employees Expected to Benefit
With the revised wage ceiling, employees falling within the expanded eligibility range are expected to come under mandatory EPFO coverage. According to the government, more than 51 lakh additional workers are expected to be covered under the new framework.
The expansion is expected to improve access to long-term savings and retirement-related social security benefits for a larger number of salaried employees.
Major Step Towards Wider Social Security Coverage
The government has described the decision as part of its broader effort to strengthen formal employment and social security in the country.
EPFO coverage provides employees with access to provident fund savings, while the wider EPFO system also supports pension and insurance-related social security mechanisms for eligible members.
The increase in the wage ceiling is intended to reflect changes in wages and employment patterns since the previous ceiling was fixed.
What the EPFO Wage Ceiling Hike Means
The key change is the increase in the mandatory coverage wage ceiling:
- Earlier wage ceiling: ₹15,000 per month
- New wage ceiling: ₹25,000 per month
- Expected additional employees covered: Over 51 lakh
- Objective: Expand social security and strengthen retirement savings coverage
The government said the decision supports its long-term vision of wider social security coverage and stronger retirement protection for workers.
The revised framework will expand the number of employees brought within mandatory EPFO coverage, marking an important development for India’s organised workforce and employment-linked social security system.
