Cabinet approves enhancement of EPFO wage ceiling from Rs.15,000 to Rs.25,000 per month

The Union Cabinet has approved the Ministry of Labour & Employment's proposal to raise the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from Rs.15,000 to Rs.25,000 per month. This change is expected to bring over 51 lakh additional employees within the mandatory EPFO framework, extending access to provident fund savings, pension protection under the Employees’ Pension Scheme (EPS), and insurance protection under the Employees’ Deposit Linked Insurance Scheme (EDLI). The revision accounts for sustained wage growth, rising incomes, and the expansion of formal employment since the ceiling was last updated in September 2014. The estimated five-year expenditure stands at approximately Rs.56,696 crore.