India's cabinet approved raising the wage ceiling for Employees' Provident Fund Organisation (EPFO) coverage from ₹15,000 to ₹25,000, Information Minister Ashwini Vaishnaw announced on Wednesday. This marks the first revision in the wage ceiling in about 12 years, expanding social security coverage for a larger segment of salaried workers.
The decision was taken during a cabinet meeting chaired by the Prime Minister, reflecting the government's intent to enhance social security benefits. The move increases the monthly salary limit on which EPFO contributions are calculated, allowing more employees to benefit from provident fund schemes. Ashwini Vaishnaw highlighted the significance of this change in a public statement, emphasizing the government's commitment to worker welfare.
The EPFO wage ceiling had remained unchanged at ₹15,000 since 2014, limiting the provident fund benefits for many employees earning above that threshold. By raising the ceiling to ₹25,000, the government aligns with inflation and wage growth trends, potentially increasing retirement savings for millions. This adjustment is expected to impact both employers and employees, as higher contributions will be made to the provident fund accounts under the new limit.
The cabinet's approval was reported by livemint.com on September 16, 2026, marking a significant policy update in India's social security framework. The next official update on EPFO regulations is anticipated during the upcoming fiscal budget announcements.