The contributions of the employees and employers towards the EPS will also increase as per the new wage ceiling. File.
| Photo Credit: The Hindu
The Union Cabinet has approved the enhancement of the the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) to ₹25,000 per month from ₹15,000, Minister of Information and Broadcasting Ashwini Vaishnaw said on Wednesday (September 16, 2026) during a press briefing.
In a press release, the Government said that this decision is expected to bring more than 51 lakh additional employees within the ambit of mandatory EPFO coverage.
The decision will also expand access to provident fund savings, pension protection under the Employees’ Pension Scheme (EPS) and insurance protection under the Employees’ Deposit Linked Insurance Scheme (EDLI), the statement further read
The annual Government outgo is estimated at about ₹11,339 crore, against the existing annual budgetary support of about ₹10,250 crore. The contributions of the employees and employers towards the EPS will also increase as per the new wage ceiling.
During the press briefing, Union Labour Minister Mansukh Mandaviya said ₹23,000 is the average salary in private establishments as per a government survey. “More workers will get benefits of pension, death insurance and better interest for their savings as the EPFO expands its coverage,” he said.
Employers contribution will increase by ₹600 per employee, the Minister said, adding that the contribution of employees towards the EPS will also increase.
“Around one crore workers will get the benefit of the decision,” the Minister said.
Published – September 16, 2026 03:36 pm IST
