The Union Cabinet approved the Ministry of Labour and Employment’s proposal to raise the mandatory wage ceiling under the EPFO from โน15,000 to โน25,000 per month.
Context
What the Wage Ceiling Is
- The statutory monthly salary threshold โ basic pay plus dearness allowance
- Determining mandatory coverage under the EPF and Miscellaneous Provisions Act, 1952
- Any worker joining an establishment with 20 or more employees at a wage up to this limit must be mandatorily enrolled in the provident fund, pension and insurance schemes
Aim
- Align statutory social security with sustained wage growth, rising cost of living and inflation
- Ensure entry- and mid-level formal sector workers receive portable, assured retirement savings and survivor benefits
The Revision Historymost asked
- โน6,500 per month from 2004 until 1 September 2014
- Revised to โน15,000 in 2014
- Over the following 12 years, rising state minimum wages brought baseline earnings close to or above โน15,000, leaving new workers outside automatic coverage
- The Expenditure Finance Committee cleared the hike to โน25,000 in June 2026









