New Delhi: The Union Cabinet has approved raising the EPFO wage ceiling from ₹15,000 to ₹25,000 per month, widening the Employees' Provident Fund scheme to a much larger pool of workers. The decision was approved on September 16, 2026, and took effect on September 17. This is the first increase in the wage ceiling since September 2014, when it was raised from ₹6,500 to ₹15,000.

The move is expected to bring around 51 lakh new workers under EPF coverage, extending retirement savings, pension and insurance benefits to employees earning above the old threshold. Employers and employees each contribute 12 per cent of wages to the fund, and the ceiling sets the maximum salary on which contributions are calculated.

The hike comes as formal-sector employment expands and wages rise across the economy. With the ceiling unchanged for 12 years, a growing share of salaried workers had crossed the ₹15,000 mark and fallen out of mandatory coverage.

The Labour Ministry said the higher ceiling will strengthen the social security net for middle-income workers. Notification details and contribution schedules are expected to follow through the Employees' Provident Fund Organisation's official channels.