EPF Wage Ceiling Raised from Rs 15,000 to Rs 25,000, Union Cabinet Approves

The Union Cabinet has approved raising the statutory wage ceiling for Employees' Provident Fund (EPF) coverage from Rs 15,000 to Rs 25,000 per month. The decision was announced on September 16, 2026, and is aimed at bringing more salaried workers within the formal social-security framework.

What changes

The Rs 15,000 ceiling had remained unchanged since 2014. The revised limit raises the salary threshold for mandatory EPF coverage to Rs 25,000 a month. The government estimates that about 51 lakh additional employees could come under EPFO coverage.

According to reports on the Cabinet decision, the statutory employee and employer contribution rate remains 12 percent, with the revised framework determining how contributions apply up to the new ceiling. The move is also expected to expand access to pension and insurance-related social-security benefits for eligible workers.

The government is expected to begin the regulatory and administrative process for implementing the revised ceiling. The change follows years of discussion over updating the EPF wage threshold in line with changes in wages and employment patterns.