The Union Minister of Labour & Employment and Youth Affairs & Sports announced the enhancement of wage ceiling for EPFO coverage from Rs. 15,000 to Rs. 25,000 per month, effective on Vishwakarma Jayanti and Sewa Divas (September 17, 2026). This decision is expected to bring a larger number of employees under mandatory EPFO coverage.
On September 16, 2026, Dr. Mansukh Mandaviya, Union Minister of Labour & Employment and Youth Affairs & Sports, announced that the wage ceiling for mandatory coverage under the employees’ Provident Fund Organisation (EPFO) has been enhanced from Rs. 15,000 to Rs. 25,000 per month, effective on Vishwakarma Jayanti and Sewa Divas on September 17, 2026. This decision, approved by the Union Cabinet earlier in the day, aims to bring a larger number of employees within the ambit of mandatory EPFO coverage.
Dr. Mandaviya highlighted that this move will further advance the government's commitment to providing social security to all workers under the Labour Codes and will give impetus to the formalisation of employment. He noted that the wage ceiling had remained unchanged since September 2014, despite considerable increases in wages, minimum wages, and living costs.
At present, employees joining an establishment at wages above Rs. 15,000 per month are not automatically covered under the mandatory EPF framework, subject to the applicable statutory provisions. With the revised ceiling, employees drawing wages between Rs. 15,000 and Rs. 25,000 per month will become eligible for mandatory coverage, expanding the reach of formal social security.
The enhanced coverage will provide access, in accordance with the applicable statutory and scheme provisions, to the three major components administered by EPFO: Employees’ Provident Fund (EPF), Employees’ Pension Scheme (EPS), and Employees’ Deposit Linked Insurance Scheme (EDLI). This is expected to strengthen retirement savings, pension protection, and insurance-linked social security for a larger section of workers.
The proposal underwent detailed inter-ministerial consultations and was recommended by the Expenditure Finance Committee (EFC) in its meeting held on June 16, 2026. The annual Government outgo on account of the enhancement is estimated at approximately Rs. 11,339 crore, as against the existing annual budgetary support of around Rs. 10,250 crore.
Source:
Press Information Bureau
