The Union Cabinet approved a proposal to raise the wage ceiling for mandatory coverage under the Employees' Provident Fund Organisation (EPFO) from Rs 15,000 to Rs 25,000 per month, with the revised ceiling taking effect from 17 September 2026. The move is expected to bring more than 51 lakh additional employees, those earning between Rs 15,000 and Rs 25,000 a month, within the statutory social-security framework, giving them access to provident fund savings, pension eligibility under the Employees' Pension Scheme (EPS), and insurance protection under the Employees' Deposit-Linked Insurance (EDLI) scheme.

The decision marks the first revision to the EPFO wage ceiling since September 2014, when it was last increased to Rs 15,000. The government cited sustained wage growth, rising incomes, and the expansion of formal employment over the past decade as the reasoning behind the enhancement. The EPFO, which functions under the Ministry of Labour and Employment, administers the Employees' Provident Fund scheme for organised-sector workers across India, and the wage ceiling determines which employees fall under its mandatory coverage, with employees earning above the ceiling generally exempt from mandatory coverage, though voluntary coverage may still apply.