The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the proposal of the Ministry of Labour & Employment to enhance the wage ceiling for mandatory coverage under the Employees ’Provident Fund Organisation (EPFO) from Rs.15,000 to Rs.25,000per month. The decision is expected to bring more than 51 lakh additional employees within the ambit of mandatory EPFO coverage, significantly widening social security protection for workers.
At present, a fresh employee joining employment at a wage above Rs.15,000 per month is not automatically covered under the EPF framework and may remain outside mandatory provident fund, pension and associated insurance protection. Raising the ceiling to Rs.25,000 will bring a substantial segment of employees in the Rs.15,000-Rs.25,000 wage band within the statutory social security framework.
This approval marks another important step towards building an inclusive, resilient and future-ready social security architecture, ensuring that social protection advances alongside economic growth, rising wages and expanding formal employment as India moves towards Viksit Bharat@2047.
The Ministry of Labour & Employment and EPFO will undertake the necessary statutory and administrative steps for implementation of the decision.
Click here to download Ministry Approval.
