EPFO Wage Ceiling Raised from ₹15,000 to ₹25,000
Why in the news
The Cabinet accepted a Labour Ministry proposal to widen EPFO’s compulsory coverage by lifting the salary limit.
Key facts
- New ceiling: ₹25,000 per month, up from ₹15,000.
- Proposal of the Ministry of Labour and Employment, approved by the Union Cabinet.
- The Expenditure Finance Committee had cleared it in June 2026.
About the wage ceiling
- It is the statutory monthly salary limit, counted as basic pay plus dearness allowance.
- It decides who must be covered under the EPF and Miscellaneous Provisions Act, 1952.
Revision history
| Period | Ceiling per month |
|---|---|
| 2004 until 1 September 2014 | ₹6,500 |
| Revised in 2014 | ₹15,000 |
| Cabinet approval, 2026 | ₹25,000 |
Significance
- Brings the limit in line with wage growth, living costs and inflation.
- Over 12 years, rising state minimum wages left new workers outside automatic coverage.
- Entry- and mid-level formal workers get portable, assured retirement savings and survivor benefits.
Exam angle
- Old and new ceilings; the governing Act of 1952.
- Components counted: basic pay and dearness allowance.