The Ministry of Labour has raised the EPFO wage ceiling from ₹15,000 to ₹25,000 after 12 years, expanding mandatory social security coverage to over 51 lakh additional workers. While this boosts retirement savings and formalisation, it may reduce take-home pay for employees earning between ₹15,000 and ₹25,000 and increase costs for employers, especially MSMEs.
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- ›New Wage Ceiling: ₹25,000 per month
- ›Previous Ceiling: ₹15,000 (since Sept 2014)
- ›Target this Data: New EPFO wage ceiling = ₹25,000 (effective 17 Sept 2026); previous = ₹15,000 (since Sept 2014); gap = 12 years.
- ›Target this Nodal Body: Ministry of Labour and Employment (not Ministry of Finance).
- ›Target this Legal Point: EPF Scheme 1952 – 9th revision; EPS contribution rate = 8.33% of wages up to ceiling; EDLI contribution = 0.5% by employer.
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