Story perspectives

Cabinet Approves EPFO Wage Ceiling Rise to Rs 25,000

By Drooid · Sep 16, 2026, 4:47 PM UTC · How we work

Summary

Story summary

The Union Cabinet approved raising the Employees’ Provident Fund Organisation wage ceiling to Rs 25,000 per month, effective 17 September 2026.
The revision will cost about Rs 11,339 crore annually, totalling Rs 56,696 crore over five years.
It will add roughly 5.1 million workers to mandatory EPFO coverage.
Employee contributions rise to Rs 3,000 per month from Rs 1,800.
Employers keep a 12% salary contribution, split 3.67% EPF and 8.33% EPS.

History

Historical Context

The Employees’ Provident Fund Organisation was founded under the Employees’ Provident Funds Act of 1952, which mandated contributions of 12 % of wage and set a wage ceiling of INR15,000. Since then the fund has grown to manage more than INR15.6 lakh crore and cover millions of workers. In 2024 the Union Cabinet, led by Prime Minister Narendra Modi, approved raising the ceiling to INR25,000, continuing the expansion.

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Story summary

The Union Cabinet approved raising the Employees’ Provident Fund Organisation wage ceiling to Rs 25,000 per month, effective 17 September 2026.
The revision will cost about Rs 11,339 crore annually, totalling Rs 56,696 crore over five years.
It will add roughly 5.1 million workers to mandatory EPFO coverage.
Employee contributions rise to Rs 3,000 per month from Rs 1,800.
Employers keep a 12% salary contribution, split 3.67% EPF and 8.33% EPS.

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