Cabinet Raises EPFO Wage Ceiling to ₹25,000 to Expand Social Security for 51 Lakh Workers
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved a major proposal by the Ministry of Labour and Employment to raise the wage ceiling for mandatory coverage under the Employees' Provident Fund Organisation (EPFO) from ₹15,000 to ₹25,000 per month. The landmark decision is projected to bring over 51 lakh additional formal-sector employees into the statutory social security net across the country.
The wage threshold under the EPF scheme had remained unchanged since September 2014, when it was raised from ₹6,500 to ₹15,000. Over the past twelve years, rising salary levels, inflation, and increasing formalisation of the Indian economy led to calls from trade unions and policy analysts to revise the threshold upwards so that mid-tier private sector workers are not excluded from statutory benefits.
Under the revised rules, newly hired workers drawing a monthly salary of up to ₹25,000 will be mandatorily covered under the Employees' Provident Fund (EPF), the Employees' Pension Scheme (EPS), and the Employees' Deposit Linked Insurance Scheme (EDLI). The reform guarantees compulsory employer contributions, enhanced retirement savings, life insurance coverage, and pension rights for millions of newly eligible workers, marking a critical step in strengthening India's long-term social security infrastructure.
