Cabinet Raises EPFO Wage Ceiling to ₹25,000, Expanding Provident Fund Cover

The Union Cabinet has approved an increase in the wage ceiling for Employees' Provident Fund coverage to ₹25,000 a month from ₹15,000, Information and Broadcasting Minister Ashwini Vaishnaw announced on Wednesday. The revision comes roughly 12 years after the ceiling was last raised.

The threshold had stayed at ₹15,000 from 2004 to 2014, when it was enhanced to ₹15,000 in September of that year. The latest decision lifts it further, with the government stating that the change reflects sustained wage growth, rising incomes and the continued expansion of formal employment over the intervening years.

Speaking at a press briefing, Vaishnaw said the measure is expected to bring more than 51 lakh additional employees under mandatory EPFO coverage, widening access to social security protection for workers.

The government estimates the annual outgo at about ₹11,339 crore, compared with the existing annual budgetary support of roughly ₹10,250 crore. Over five years, the estimated expenditure is approximately ₹56,696 crore.

Officials expect the move to encourage further formalisation of employment, strengthen long-term retirement security and broaden access to portable statutory social security benefits.

The Employees' Provident Fund Organisation currently administers the Employees' Provident Fund, the Employees' Pension Scheme and the Employees' Deposit Linked Insurance Scheme. According to the latest data cited by the government, the EPFO has around 7.98 crore contributing members across about 7.68 lakh contributing establishments, while the EPS provides pension benefits to around 82 lakh pensioners.