EconomySocial_Issues
News 10 of 19

EPFO Wage Ceiling Raised to ₹25,000: Mandatory Coverage for 51 Lakh More Employees

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
18 Sept 2026
~2 min
Source: The Hindu
Key Data:₹25,000₹15,00051 lakhSeptember 2014₹2,082.5₹600
Bodies:EPFOUnion CabinetMinistry of Labour and EmploymentEmployees' Pension Scheme (EPS)Employees' Deposit Linked Insurance Scheme (EDLI)
Practice MCQs from today's news ▸
What This Article Covers

1.EPFO wage ceiling for mandatory coverage raised from ₹15,000 to ₹25,000 per month, first revision since September 2014.

2.Government expects to add 51 lakh new employees under EPFO; total subscribers may increase by 1 crore. Employer PF contribution rises by ₹600 per employee.

3.Employer’s EPS contribution becomes ₹2,082.5/month (8.33% of new ceiling); government’s annual EPS contribution will increase from ₹10,250 crore to ₹11,339 crore.

The Big Picture
Prelims · HighMains · Medium

The Union Cabinet raised the EPFO wage ceiling from ₹15,000 to ₹25,000 per month, bringing over 51 lakh additional employees under mandatory social security coverage. The move aims to formalise employment and strengthen retirement savings, but trade unions call it "too little too late" while MSMEs worry about increased contribution burden.

Exam Lens

Quick Exam Facts From News

Old Wage Ceiling₹15,000/month
New Wage Ceiling₹25,000/month
Last Revision YearSeptember 2014
Additional Employees Covered51 lakh (approx)
Employer EPS Contribution (new)₹2,082.5/month
Govt. EPS Allocation (new)₹11,339 crore/year
Legal BasisClause (89) of Section 2, Code on Social Security

1-Minute Revision

  • ›Old Wage Ceiling: ₹15,000/month
  • ›New Wage Ceiling: ₹25,000/month
  • ›Target this Data: ₹25,000 (new wage ceiling) and ₹15,000 (old ceiling)
  • ›Target this Nodal Body: Ministry of Labour and Employment (administers EPFO)
  • ›Target this Legal Point: Clause (89) of Section 2 of the Code on Social Security, 2020

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which ministry is responsible for administering the Employees' Provident Fund Organisation (EPFO) and implementing the wage ceiling revision?

Q2Statement-basedHard

Consider the following statements regarding the revision of EPFO wage ceiling:

1. The wage ceiling for mandatory EPFO coverage has been increased from ₹15,000 to ₹25,000 per month.

2. The last revision of the wage ceiling before this was in September 2014.

3. The revision was implemented with effect from April 1, 2026, as per the official notification.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the article, what is the new monthly contribution by employers towards the Employees' Pension Scheme (EPS) per employee after the wage ceiling revision?

Q4Application/ImpactMedium

What is the primary objective of the EPFO wage ceiling revision announced by the Union Cabinet?

All 20 MCQs ▸
You finished this topic
Explore Related Topics
Related Current Affairs
Economy Current Affairs

Cabinet Raises EPFO Wage Ceiling to ₹25,000; 51 Lakh More Workers Covered from Sept 17

Union Cabinet has approved raising the wage ceiling for mandatory EPFO coverage from ₹15,000 to ₹25,000 per month, effective September 17. This will bring 51 lakh additional workers under EPFO, EPS, and EDLI schemes, with annual government outgo increasing by ~₹1,089 crore.

Economy Current Affairs

EPFO Wage Ceiling Hiked to ₹25,000 After 12 Years: 8 Cr Subscribers Impacted

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.

Economy Current Affairs

Cabinet Raises EPFO Wage Ceiling to ₹25,000, 51 Lakh More Workers Covered; EPS Minimum Pension Unresolved

The Union Cabinet has raised the wage ceiling for mandatory EPFO coverage from ₹15,000 to ₹25,000 after a 12-year gap, bringing an additional 51 lakh workers under social security. However, the minimum pension of ₹1,000 per month remains unchanged since 2014, with 45% of 82 lakh pensioners receiving that amount or less, sparking demands for urgent revision.

Social Issues Current Affairs

ESIC Report Warns Against Privatisation, Recommends ₹33,000 Wage Ceiling, Panchdeep 2.0 Rollout

The 'ESI Ki Baat' report by Safe In India warns against privatisation of ESIC and recommends raising the wage ceiling to ₹33,000 from ₹21,000 to expand coverage. It also highlights the rollout of Panchdeep 2.0 digital platform and stresses that private involvement must be strictly regulated.

Polity Current Affairs

Tamil Nadu Budget 2026-27: Fishing Aid Raised to ₹7,000, Vetri Magalir Goat Scheme & Livestock Insurance Announced

Tamil Nadu's revised budget for 2026-27 increases lean-period fishing assistance from ₹6,000 to ₹7,000 per family, benefiting 1.93 lakh traditional fishermen. It also launches the 'Vetri Magalir Goat Rearing Scheme' for destitute women and transgender persons, and a new livestock insurance scheme 'Kaalnadaigal Kaappom'.

Polity Current Affairs

MCA Data Reveals Only 9 Women CEOs, 25 MDs in India's Top 500 Listed Companies

Ministry of Corporate Affairs data tabled in Lok Sabha reveals severe underrepresentation of women in top corporate leadership: only 9 CEOs and 25 MDs among India's 500 largest listed companies. This directly impacts the UPSC/state PSC themes of women empowerment, corporate governance, and the effectiveness of legal mandates under the Companies Act, 2013.

Polity Current Affairs

NPPA Raises Ceiling Prices of Cisplatin, Carboplatin by 50% Amid Shortage

India is in the grip of a critical nationwide shortage of cisplatin and carboplatin, two essential chemotherapy drugs, caused by a doubling in platinum prices and West Asia shipping disruptions. The NPPA has temporarily raised price caps by 50% to push manufacturers to restart production, making this a key case study on drug pricing regulation, public health preparedness, and supply-chain vulnerability for exams.

Economy Current Affairs

16th FC Report: UCT Schemes Exceed 50% of Education Budget in 3 States, Fiscal Space Shrinks

The 16th Finance Commission and Economic Survey have raised concerns over the rising fiscal burden of Unconditional Cash Transfer (UCT) schemes for women. In states like Jharkhand, UCT spending exceeds 10% of total state expenditure and over 50% of education spending, threatening other public services. With 44% of state expenditure locked in interest, pensions, and salaries, fiscal space is shrinking.