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EPFO Wage Ceiling Hike: 51 Lakh Workers Covered, Zero New Jobs Created
M
Moneycontrol•22-09-2026, 08:32
EPFO Wage Ceiling Hike: 51 Lakh Workers Covered, Zero New Jobs Created
- •The Union Cabinet raised the mandatory wage ceiling for EPFO coverage from Rs 15,000 to Rs 25,000 per month, effective September 17.
- •This change brings over 51 lakh additional employees, already in the Rs 15,000-Rs 25,000 wage band, under mandatory social security, not creating new jobs.
- •The hike provides pension protection, insurance cover, and mandatory long-term savings for previously exempt workers.
- •The decision reflects sustained wage growth and expansion of formal employment, with average monthly earnings for men at Rs 24,217 and women at Rs 18,353 in 2025.
- •The move carries an additional annual government outgo of about Rs 1,089 crore, expanding an already large social security system.
Key Questions Answered
The Union Cabinet raised the mandatory wage ceiling for Employees' Provident Fund Organisation coverage from Rs 15,000 to Rs 25,000 a month, with the change taking effect on September 17, 2026.
The decision will bring more than 51 lakh additional employees within the mandatory EPFO social security framework.
The additional annual government outgo is estimated at about Rs 11,339 crore, compared to previous budgetary support of roughly Rs 10,250 crore.
