On 28 September 2024, the Union Ministry of Labour announced a 10,000 rupee hike to the Employees Provident Fund wage ceiling, raising it from ₹15,000 to ₹25,000 per month. The move, approved in today's cabinet meeting, will bring 5.1 million more workers under mandatory EPFO coverage.
Ashwini Vaishnaw told reporters that the decision addresses a long‑standing demand. "Employees earning between ₹15,000 and ₹25,000 have been excluded from the scheme for years," he said, adding that the Prime Minister signed off on the change.
The ceiling had remained static for a decade before the 2014 revision, which saw it climb to ₹15,000. Since then, wages and living costs have risen sharply, pushing the average salary to roughly ₹23,000 per month.
EPFO, one of the world’s largest social security institutions, now boasts 7.98 crore members and 7.68 lakh registered employers. The new threshold will extend coverage to a segment that previously missed out on the Employees Pension Scheme, ensuring their retirement savings grow.
The central government estimates the annual cost of the expansion at ₹11,339 crore, a figure that will shape fiscal planning for the next budget cycle. Employers will need to adjust payroll software to record contributions for the newly eligible cohort.
EPFO is preparing updated enrollment guidelines, set to be released in early October, and will conduct a compliance audit of 10,000 firms in the first quarter of 2025 to ensure smooth implementation.