The Union Cabinet has approved an increase in the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from ₹15,000 to ₹25,000 per month.
Announcing the decision in New Delhi, Information and Broadcasting Minister Ashwini Vaishnaw said the move is expected to bring more than 51 lakh additional employees under mandatory EPFO coverage, expanding social security protection for workers.
The annual financial outgo for the government is estimated at around ₹11,339 crore. The revised wage ceiling will come into effect from Vishwakarma Jayanti.
Vaishnaw said the EPFO wage ceiling had remained unchanged between 2004 and 2014 before being raised to ₹15,000 in September 2014. He said the latest increase reflects sustained wage growth, rising incomes and the continued expansion of formal employment over the years.
The decision is expected to extend provident fund and related social-security benefits to a larger section of workers earning between ₹15,000 and ₹25,000 per month.
