Union Cabinet Approves Raising EPFO Wage Ceiling to ₹25,000 per Month

The Union Cabinet approved raising the monthly wage ceiling for mandatory EPFO coverage from ₹15,000 to ₹25,000, bringing over 51 lakh additional employees under formal social security.

The Union Labour Ministry published the gazette notification under the Code on Social Security, with the government spending about ₹11,339 crore towards its pension contribution.

Under the new framework, employers' monthly contribution rate for the Employees' Pension Scheme will increase to ₹2,082.5, while trade unions expressed concern over potential impacts on take-home pay.