EPFO Raises Wage Ceiling for Mandatory Social Security Coverage to ₹25,000

The Union Cabinet approved a hike in the monthly wage ceiling for mandatory coverage under the Employees' Provident Fund Organisation (EPFO) schemes. The ceiling was raised from ₹15,000 to ₹25,000 per month, marking the first such revision in 12 years since 2014. The Employees' Provident Fund Organisation administers various social security programmes, including pension under the Employees’ Pension Scheme (EPS) and insurance protection under the Employees’ Deposit Linked Insurance Scheme (EDLI).

The increase in the wage ceiling affects the mandatory coverage for members of the EPFO schemes. The hike was made following demands from trade unions, such as the All India Trade Union Congress (AITUC), which argued the ceiling needed to keep pace with inflation and cost of living. With contributions from the employer and the government subject to the wage ceiling, the total accumulated corpus toward final pension payouts is set to increase.

EPF contributions for salaried employees are capped by the statutory wage ceiling. The Centre notified the new Employees' Provident Fund Scheme 2026, which is integrated into the Social Security Code 2020.