Special Service and Features
EPFO enhances statutory wage ceiling to ₹25,000; boosts social security and workforce formalisation
Posted On:
18 SEP 2026 2:58PM by PIB Thiruvananthpuram
The statutory wage ceiling for mandatory EPF coverage has been raised from ₹15,000 to ₹25,000 per month with effect from 17 September 2026, bringing a wider section of the workforce within the ambit of social security. The enhanced ceiling will help eligible workers build a stronger retirement corpus while providing access to benefits under EPF, EPS and EDLI.
EPFO is also making access to benefits faster and more convenient. EPF members earn interest at the approved rate of 8.25% per annum and can avail online withdrawal of up to 75% of their accumulated balance. Powered by the CITES technology platform, eligible claims up to ₹5 lakh are now auto-settled within 3 working days.
Alongside expanded coverage, the Government is promoting employment generation through the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY). Eligible establishments creating net additional employment can receive incentives of up to ₹3,000 per employee per month for 2 years in non-manufacturing sectors and 4 years in manufacturing sectors, giving further impetus to formal employment. In Ernakulam, Alappuzha and Thrissur, RO Kochi is taking social security closer to workers and establishments through digital initiatives such as UAN Face Authentication Technology (FAT) and the UMANG App. The Regional Office is also actively reaching out to eligible establishments and workers to maximise participation in PMVBRY and promote formal employment.
Employers are encouraged to ensure timely filing of Electronic Challan-cum-Returns (ECRs) and fulfil the prescribed PMVBRY conditions, including maintaining net additional employment for at least six months and ensuring completion of the prescribed financial literacy module by new employees.
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(Release ID: 2311968)
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