EPFO wage ceiling raised to ₹25,000: over 51 lakh more employees get PF, pension and insurance cover
The EPFO wage ceiling for mandatory coverage has gone up from ₹15,000 to ₹25,000 a month from 17 September 2026, bringing more than 51 lakh additional employees under PF, pension and insurance cover.
The Union Government has raised the Employees’ Provident Fund Organisation (EPFO) wage ceiling for mandatory coverage from ₹15,000 to ₹25,000 per month. The new limit applies from 17 September 2026, a day after the Union Cabinet approved it on 16 September 2026.
The change is expected to bring more than 51 lakh additional employees under mandatory social security coverage.
What has changed
The wage ceiling had stayed at ₹15,000 a month since September 2014. Employees earning between ₹15,000 and ₹25,000 a month now come under mandatory EPFO coverage, subject to the applicable rules.
The revised ceiling covers three schemes:
- Employees’ Provident Fund (EPF): long-term retirement savings from employee and employer contributions.
- Employees’ Pension Scheme (EPS): pension benefits, subject to eligibility and scheme rules.
- Employees’ Deposit Linked Insurance (EDLI): life insurance cover for eligible members.
Key highlights
| Item | Details |
|---|---|
| Previous wage ceiling | ₹15,000 per month (since September 2014) |
| Revised wage ceiling | ₹25,000 per month |
| Cabinet approval | 16 September 2026 |
| Effective from | 17 September 2026 |
| Additional employees covered | More than 51 lakh |
| Schemes covered | EPF, EPS and EDLI |
How employees benefit
- More salaried workers get mandatory provident fund, pension and insurance cover.
- Retirement savings grow through regular contributions and compound interest.
- Employees should check their salary slips and EPFO passbook to see how the change applies to them.
Cost to the government
The government’s annual spending under the scheme is estimated at about ₹11,339 crore, compared with about ₹10,250 crore earlier. Over five years, the outlay is projected at about ₹56,696 crore.
What employers should do
- Review payroll for employees earning between ₹15,000 and ₹25,000 a month.
- Update PF, EPS and EDLI contribution calculations from 17 September 2026.
- Follow EPFO guidance on enrolling newly covered employees.
Estimate your PF savings with the free EPF calculator and check your take-home pay with the salary calculator.
Frequently asked questions
What is the new EPFO wage ceiling?
The wage ceiling for mandatory EPFO coverage is ₹25,000 per month from 17 September 2026, up from ₹15,000.
How many employees will benefit?
The government estimates that more than 51 lakh additional employees will come under mandatory coverage.
Who comes under the new rule?
Employees earning between ₹15,000 and ₹25,000 a month now come under mandatory EPFO coverage, subject to the applicable rules.
Does it include pension and insurance?
Yes. The revised ceiling applies to EPF, EPS (pension) and EDLI (insurance), subject to each scheme’s rules.
When did the new ceiling take effect?
On 17 September 2026, after Cabinet approval on 16 September 2026.
Will my take-home salary change?
It can. Employee and employer contributions may change depending on your salary structure and membership status. Check your salary slip and EPFO passbook.
Sources
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