Centre Takes Key Decision on Employees’ Provident Fund

The Union Government has approved a major change for salaried employees by raising the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from Rs.15,000 to Rs.25,000 per month. The revised ceiling will take effect from September 17, 2026. The move will bring more employees earning between Rs.15,000 and Rs.25,000 within the EPF, EPS and EDLI social security framework. More than 51 lakh additional employees are expected to benefit from the expanded coverage.

The higher wage ceiling will also increase mandatory contributions from eligible employees and employers. While this could marginally reduce monthly take-home pay, it will increase employees’ long-term retirement savings, pension coverage and social security protection. The maximum EDLI insurance benefit is currently Rs.7 lakh, and it could rise to around Rs.10.50 lakh if the scheme’s calculation ceiling is revised accordingly. However, the exact EDLI benefit will be confirmed only after the government issues the relevant notification.