India Expands EPFO Social Security Cover

The Union Cabinet has approved raising the monthly wage threshold for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from INR 15,000 to INR 25,000. Effective September 17, 2026, the revised limit is expected to extend mandatory EPFO coverage to more than 51 lakh additional employees.

Union Minister for Labour and Employment Mansukh Mandaviya announced the decision, which widens the threshold applicable to employees entering establishments covered by the EPFO framework. Workers earning between INR 15,000 and INR 25,000 per month will now fall within the expanded wage limit, subject to the relevant statutory and scheme provisions.

The EPFO wage ceiling was last revised in September 2014, when it was increased to INR 15,000 per month. It had remained unchanged since then. The Government said the latest revision is intended to broaden statutory social security protection in line with changes in wage levels.

Eligible workers will receive coverage under the applicable provisions of EPFO’s three principal schemes — the Employees’ Provident Fund (EPF), Employees’ Pension Scheme (EPS) and Employees’ Deposit Linked Insurance Scheme (EDLI). The wider coverage is also expected to support employment formalisation and extend access to provident fund, pension and insurance-linked benefits.

The proposal underwent inter-ministerial consultations and was recommended by the Expenditure Finance Committee at its June 16, 2026 meeting. The additional annual government outgo resulting from the higher ceiling is estimated at around INR 11,339 crore, compared with existing annual budgetary support of approximately INR 10,250 crore.

The estimated expenditure over five years stands at approximately INR 56,696 crore. For employers, the change will increase the number of employees covered under statutory EPFO requirements.

The Government expects the expanded social security framework to contribute to employee retention and workforce stability while extending retirement, pension and insurance protection to a larger section of workers.

The Ministry of Labour and Employment and EPFO will undertake the necessary statutory and administrative measures to implement the revised wage ceiling.

The decision represents a substantial expansion of mandatory social security coverage as India seeks to formalise employment and extend statutory benefits to a wider workforce.