Earning up to ₹25,000 a month? You now come under mandatory EPF cover
ERFO wage cover
Salaried workers earning up to ₹25,000 a month will now be compulsorily covered by the Employees' Provident Fund Organisation (EPFO), after the Union Cabinet raised the wage ceiling for mandatory coverage from ₹15,000.
The Cabinet approved the change on 16 September 2026. The Ministry of Labour and Employment said it takes effect from 17 September 2026. It is the first revision since September 2014, when the ceiling was set at ₹15,000.
The government expects over 51 lakh additional employees to come under mandatory coverage.
Who is affected
The change mainly affects employees earning between ₹15,001 and ₹25,000 a month in establishments covered by EPFO. Until now, workers whose wages were above ₹15,000 when they joined were not compulsorily covered. They now fall within the mandatory limit.
Employers of these workers must now enrol them and make contributions. Existing members are also affected, because pension and insurance calculations are linked to the wage ceiling.
What changes for workers
Newly covered employees get access to all three EPFO schemes, according to the ministry: the Employees' Provident Fund (EPF), the Employees' Pension Scheme (EPS) and the Employees' Deposit Linked Insurance (EDLI) scheme.
In practice, a provident fund deduction will appear on pay slips, matched by a contribution from the employer. Take-home pay will fall slightly, but the money goes into retirement savings, builds a pension entitlement and brings life insurance cover through EDLI.
The cost and the scale
EPFO currently has about 7.98 crore contributing members across 7.68 lakh establishments, and the EPS pays pensions to about 82 lakh people, according to figures reported by ThePrint.
The government's annual spending linked to the scheme is expected to rise to about ₹11,339 crore, from about ₹10,250 crore. Over five years, the estimated cost is about ₹56,696 crore, the labour ministry said.
Why the ceiling was raised
Labour Minister Mansukh Mandaviya said the ceiling “had remained unchanged since September 2014 despite considerable increases in wages, minimum wages and living costs.”
Minimum wages in several states and occupations have moved close to the old ₹15,000 threshold, SCC Online reported. That meant a growing share of low-paid formal workers sat just above the limit and outside mandatory social security. The proposal was cleared by the Expenditure Finance Committee on 16 June 2026 before going to the Cabinet.
Information and Broadcasting Minister Ashwini Vaishnaw said the revision reflects “sustained wage growth, rising incomes” and the expansion of formal employment, All India Radio News reported.
What remains unclear
Two questions are still open. First, how quickly EPFO will issue guidance to employers on enrolling newly covered staff, and whether any contributions will apply from the effective date for wages already paid. Second, how the change affects pension calculations for existing members who already contribute on wages above ₹15,000.
ING will update this story when EPFO publishes its circular.
What you should do
If your monthly wage is between ₹15,001 and ₹25,000 and you are not yet an EPFO member, check your next pay slip for a PF deduction. Ask your employer for your Universal Account Number (UAN), and activate it on the EPFO member portal so you can track contributions.
Sources: All India Radio News · ThePrint · SCC Online
