Cabinet raises EPFO wage ceiling for mandatory coverage from ₹15,000 to ₹25,000 a month
On 16 September 2026, the Union Cabinet chaired by Prime Minister Narendra Modi approved raising the wage ceiling for mandatory coverage under the Employees' Provident Fund Organisation (EPFO) from ₹15,000 to ₹25,000 per month.
Summary
The EPFO wage ceiling increase is expected to bring more than 51 lakh additional employees under mandatory provident fund, pension and insurance coverage. Labour Minister Mansukh Mandaviya said the revised ceiling takes effect from 17 September 2026, Vishwakarma Jayanti and Sewa Divas. The ceiling had stayed at ₹15,000 since September 2014. The proposal was recommended by the Expenditure Finance Committee on 16 June 2026, and the annual government outgo is estimated at about ₹11,339 crore.
Key facts
- Decision
- EPFO wage ceiling ₹15,000 → ₹25,000 per month
- Approved by
- Union Cabinet, 16 Sep 2026
- Effective from
- 17 Sep 2026
- Additional coverage
- 51 lakh+ employees
- Previous revision
- Raised to ₹15,000 in September 2014
- Annual govt outgo
- About ₹11,339 crore
Practice MCQs 4 questions
To what amount did the Union Cabinet raise the EPFO wage ceiling for mandatory coverage on 16 September 2026?
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Correct answer: B — ₹25,000 per month
The ceiling was raised from ₹15,000 to ₹25,000 per month.
About how many additional employees are expected to come under mandatory EPFO coverage after the wage ceiling increase?
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Correct answer: D — More than 51 lakh
More than 51 lakh additional employees are expected to be covered.
When was the EPFO wage ceiling last raised to ₹15,000 before the 2026 decision?
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Correct answer: A — September 2014
The ceiling was raised to ₹15,000 in September 2014 and stayed unchanged until 2026.
Consider the following about the EPFO wage ceiling decision of September 2026: 1. The new ceiling takes effect from 17 September 2026. 2. The annual government outgo is estimated at about ₹11,339 crore. Which of the above is/are correct?
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Correct answer: C — Both 1 and 2
Both are correct. The revised ceiling applies from 17 September 2026, and the annual outgo is estimated at about ₹11,339 crore.