The Union Cabinet chaired by Prime Minister Narendra Modi has approved the Ministry of Labour & Employment's proposal to enhance the mandatory coverage wage ceiling under Employees’ Provident Fund Organisation (EPFO) from ₹15,000 to ₹25,000 per month. This decision is expected to bring over 51 lakh additional employees within mandatory EPFO coverage, significantly expanding social security protection for workers in the ₹15,000–₹25,000 wage band who were previously excluded from automatic coverage.
The enhancement will provide expanded access to provident fund savings under EPF, pension protection under Employees' Pension Scheme (EPS), and insurance protection under Employees' Deposit Linked Insurance Scheme (EDLI). The revision reflects sustained wage growth, rising incomes, and continued expansion of formal employment since the last ceiling revision in September 2014, when it was increased from a decade-long stagnation at previous levels.
The proposal underwent detailed inter-ministerial consultations and was recommended by the Expenditure Finance Committee on 16 June 2026. The government estimates an annual outgo of approximately ₹11,339 crore against the existing annual budgetary support of about ₹10,250 crore, with estimated expenditure of ₹56,696 crore over five years. EPFO currently administers one of the world's largest social security systems with approximately 7.98 crore contributing members across 7.68 lakh establishments, while EPS provides pension benefits to around 82 lakh pensioners.
The measure is expected to accelerate formalization of employment, improve worker retention, and strengthen long-term retirement security. The Ministry of Labour & Employment and EPFO will undertake necessary statutory and administrative steps for implementation, advancing India's social security vision and contributing to the Viksit Bharat@2047 development goals.