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 increase the Employees’ Provident Fund Organisation (EPFO) wage ceiling for mandatory coverage from Rs. 15,000 to Rs. 25,000 per month. This change is expected to bring over 51 lakh additional employees within the mandatory social security net, expanding access to provident fund savings, pension protection under the Employees’ Pension Scheme, and insurance protection under the Employees’ Deposit Linked Insurance Scheme. The revision reflects sustained wage growth and formal employment expansion since the last revision in September 2014. The estimated five-year government expenditure for the measure is approximately Rs. 56,696 crore.