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. The decision, taken under the leadership of Prime Minister Narendra Modi, marks a significant expansion of social security coverage for workers and has come into effect from September 17, 2026, coinciding with Vishwakarma Jayanti.

The revision in the wage ceiling has been undertaken after nearly 12 years and is expected to bring around 51 lakh additional employees within the ambit of the Employees’ Provident Fund framework across the country. The measure is aimed at extending social security benefits to a larger section of the workforce while bringing the coverage threshold in line with prevailing wage levels.

The revised ceiling was highlighted during the State-level Shramik Mahasammelan organised by the Labour Department of the Government of Chhattisgarh in Raipur on September 17. The programme, held at the Balbir Singh Junenja Indoor Stadium, was inaugurated by Chief Minister Vishnu Deo Sai. The Industry Minister, Labour Minister and other dignitaries were also present on the occasion. The Chief Minister welcomed the Union Government’s decision to enhance the Employees’ Provident Fund wage ceiling.

The Employees’ Provident Fund Organisation also put up a special exhibition at the workers’ conference to create awareness about its latest initiatives and schemes. Information was provided on the Prime Minister’s Developed India Employment Scheme, Vishwas Scheme 2026, Employees’ Enrolment Scheme 2026 and the revised wage ceiling applicable for Employees’ Provident Fund contributions. Assistant Provident Fund Commissioner Akash Agrawal and other officials of the Employees’ Provident Fund Organisation were present at the exhibition.

 

Under the Employees’ Provident Fund system, an employee contributes 12 per cent of the basic wages towards the provident fund. The employer also contributes an equivalent 12 per cent. Of the employer’s contribution, 8.33 per cent is allocated to the Employees’ Pension Scheme, while 3.67 per cent is credited to the employee’s Employees’ Provident Fund account. The Central Government also provides a contribution of 1.16 per cent towards the pension fund.

 

The enhancement of the wage ceiling is expected to strengthen workers’ financial security after retirement and widen the reach of the Employees’ Provident Fund Organisation. Expansion of social security coverage is also expected to support the formalisation of employment by bringing more workers into the organised social security framework.

 

The decision reinforces the government’s emphasis on linking employment with social security and is being positioned as another significant step towards expanding welfare and retirement protection for workers.

 

 

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