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The Union Cabinet on 16 September 2026 raised the wage ceiling for mandatory EPFO coverage from Rs 15,000 to Rs 25,000 a month, effective 17 September 2026.
It is the first revision in 12 years: the Rs 15,000 limit had applied since 1 September 2014, when it replaced Rs 6,500.
Over 51 lakh more employees are expected to come under compulsory EPF, EPS and EDLI coverage.
Annual budgetary support rises from about Rs 10,250 crore to about Rs 11,339 crore; the five-year cost is put at about Rs 56,696 crore.
The ceiling is now set under the Code on Social Security, 2020, which replaced the EPF and Miscellaneous Provisions Act, 1952 when the labour codes took effect on 21 November 2025.
Operationalised on 21 November 2025 with the other three labour codes. It consolidated nine social security laws, including the EPF and Miscellaneous Provisions Act, 1952, the ESI Act, 1948 and the Payment of Gratuity Act, 1972. The EPF wage ceiling is now notified under this Code.
The original statute that created the EPF system and the EPFO; its schemes continue under the Code.
Retirement savings
Key: Employee pays 12% of wages; of the employer's 12%, 3.67% goes to EPF
Monthly pension after retirement
Key: 8.33% of the employer's share goes here, and the Centre adds 1.16% of wages up to the ceiling; this subsidy is the budgetary support that rises with the new ceiling
Life insurance for EPF members
Key: Paid to the nominee if the member dies while in service
Statutory body that runs the EPF, EPS and EDLI schemes
Recommended the revision and will implement it with EPFO
Appraised the proposal's cost on 16 June 2026 before it went to Cabinet
Ceiling raised from Rs 6,500 to Rs 15,000
Four labour codes, including the Code on Social Security, 2020, take effect
Centre notifies the EPF wage ceiling under the Code, keeping it at Rs 15,000
Expenditure Finance Committee clears the proposal
Union Cabinet approves Rs 25,000
Revised ceiling takes effect
GS Paper II > Welfare schemes for vulnerable sections; GS Paper III > Inclusive growth, employment
General Awareness > Social security schemes, financial inclusion
General Awareness > Economy, government schemes
Who was the Minister of Science and Technology (as of 2024 question context)?
Answer: Dr. Jitendra Singh
The monthly wage limit up to which EPFO coverage and contributions are mandatory
The Centre's contribution to the pension fund, calculated on wages up to the ceiling
Employees' Deposit Linked Insurance Scheme, 1976, which gives life cover to EPF members
Labour code in force since 21 November 2025 that consolidated nine social security laws