EPF wage ceiling raised from ₹15,000 to ₹25,000 a month with effect from 17 September 2026
The Union Cabinet has approved a higher wage ceiling for mandatory EPFO coverage. Employees drawing between ₹15,000 and ₹25,000 a month become eligible for mandatory coverage.
In 30 seconds
- Wage ceiling for mandatory EPFO coverage: ₹15,000 → ₹25,000 per month.
- Takes effect from 17 September 2026.
- The ceiling had been unchanged since September 2014.
- The Ministry and EPFO will take the statutory and administrative steps for implementation.
हिंदी में सार
केंद्रीय मंत्रिमंडल ने EPFO की अनिवार्य कवरेज की वेतन सीमा ₹15,000 से बढ़ाकर ₹25,000 प्रति माह कर दी है, जो 17 सितंबर 2026 से लागू है। ₹15,000 से ₹25,000 तक वेतन पाने वाले कर्मचारी अब अनिवार्य कवरेज के दायरे में आएँगे।
Before and now
Mandatory EPFO coverage applied up to wages of ₹15,000 a month — a ceiling in place since September 2014.
The ceiling is ₹25,000 a month with effect from 17 September 2026.
The decision
The Union Cabinet approved, on 16 September 2026, an increase in the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation from ₹15,000 to ₹25,000 per month. The Labour Minister announced that it takes effect from 17 September 2026.
Who comes in
At present, employees joining an establishment at wages above ₹15,000 a month are not automatically covered under the mandatory EPF framework, subject to the applicable statutory provisions. With the revised ceiling, employees drawing wages between ₹15,000 and ₹25,000 per month become eligible for mandatory coverage.
The coverage gives access, as per the applicable statutory and scheme provisions, to the three components administered by EPFO — Employees’ Provident Fund (EPF), Employees’ Pension Scheme (EPS) and Employees’ Deposit Linked Insurance Scheme (EDLI).
What employers should watch
- The release says the Ministry of Labour & Employment and EPFO will undertake the necessary statutory and administrative steps for implementation. Watch for the notification and the EPFO circular for the operating details.
- Identify employees whose wages fall between ₹15,000 and ₹25,000 a month and who are not covered today.
The cost to the Government
The annual Government outgo on account of the enhancement is estimated at approximately ₹11,339 crore, against existing annual budgetary support of around ₹10,250 crore; over five years, about ₹56,696 crore.
Questions and answers
From which date does the ₹25,000 ceiling apply?
With effect from 17 September 2026, as announced after the Cabinet decision of 16 September 2026.
Which EPFO schemes are covered?
EPF, EPS and EDLI, in accordance with the applicable statutory and scheme provisions.
Are the operating instructions out?
The release says the Ministry and EPFO will undertake the necessary statutory and administrative steps for implementation.
Published 16 September 2026. Updated 2 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.