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

EconomySocial IssuesPolityHIGH
Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
18 Sept 2026
~2 min
Source: The Hindu
Key Data:Wage ceiling: ₹15,000 to ₹25,000Additional workers: 51 lakhTotal EPFO members: 7.98 croreMinimum pension: ₹1,000/monthPensioners ≤₹1,000: 45% of 82 lakh
Bodies:EPFOMinistry of Labour and EmploymentJoint Parliamentary Standing Committee on Labour
Practice MCQs from today's news ▸
What This Article Covers

1.EPFO wage ceiling raised to ₹25,000 from ₹15,000, covering 51 lakh new employees after a 12-year delay.

2.EPS minimum pension of ₹1,000 fixed in 2014 remains unchanged; 45% of 82 lakh pensioners get ≤ ₹1,000.

3.Joint Parliamentary Committee on Labour recommended urgent comprehensive review of minimum pension; government yet to act.

The Big Picture
Prelims · HighMains · Medium

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.

Exam Lens

Quick Exam Facts From News

Old Wage Ceiling₹15,000 (since 2014)
New Wage Ceiling₹25,000
Additional Workers Covered51 lakh
Current EPFO Contributing Members7.98 crore
EPS Minimum Pension₹1,000/month (fixed Sept 2014)
Pensioners Getting ≤ ₹1,00045% of 82 lakh
Average Private Sector Salary (as per Minister)₹23,000
BJP's Earlier Demand (2014)Minimum pension of ₹3,000 indexed to inflation

1-Minute Revision

  • ›Old Wage Ceiling: ₹15,000 (since 2014)
  • ›New Wage Ceiling: ₹25,000
  • ›Target this Data: EPFO wage ceiling raised from ₹15,000 to ₹25,000; 51 lakh additional workers; 7.98 crore current contributors; minimum pension ₹1,000 since 2014.
  • ›Target this Nodal Body: Ministry of Labour and Employment; EPFO (under the same ministry).
  • ›Target this Legal Point: Employees' Provident Funds Act, 1952; Employees' Pension Scheme (EPS) 1995 (or 2026 revision).

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

Q1Static LinkageEasy

Which ministry is primarily responsible for the administration of the Employees' Provident Fund Organisation (EPFO)?

Q2Statement-basedHard

Consider the following statements regarding the recent revision to EPFO wage ceiling:

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

2. The revision will bring an additional 7.98 crore employees under the EPFO net.

3. The minimum pension under EPS has been revised upward along with the wage ceiling.

Which of the statements given above is/are correct?

Q3Data-centricEasy

What is the revised wage ceiling for mandatory coverage under the Employees' Provident Fund Organisation (EPFO) as approved by the Union Cabinet?

Q4Application/ImpactMedium

What is the primary objective of raising the EPFO wage ceiling to ₹25,000?

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