On 17 September 2026, the Ministry of Labour and Employment notified ₹25,000 per month as the wage ceiling under the Code on Social Security, 2020.
The revised wage ceiling came into force on 17 September 2026.
Key Takeaways:
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The Government has notified ₹25,000 per month as the wage ceiling for the purposes of Chapter III of the Code on Social Security, 2020.
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The notification operationalises the Union Cabinet’s decision to raise the EPFO wage ceiling from ₹15,000 to ₹25,000 per month, extending mandatory EPFO-linked social security coverage to employees who were previously outside the coverage threshold.
Also Read: Cabinet approves EPFO wage ceiling hike from ₹15,000 to ₹25,000
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Employees covered under the revised wage ceiling will become eligible for provident fund, pension and insurance benefits under the applicable EPF-linked schemes.
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EPFO has stated that employees covered under the enhanced wage ceiling will contribute on a higher wage base, resulting in larger provident fund accumulations and potentially higher pension benefits.
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The enhanced employee contribution credited to the EPF account will earn interest at the notified EPF rate, which is 8.25% for the current financial year, thereby increasing long-term retirement savings.
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EPFO has clarified that members may withdraw up to 75% of their EPF balance by filing an online claim, subject to the applicable scheme provisions.
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Claims of up to ₹5 lakh will be auto settled within three days through the CITES technology platform, enabling faster access to EPF funds.
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Employers will also be required to make EPF contributions on the revised wage ceiling of ₹25,000 per month, thereby increasing statutory social security contributions for covered employees.
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EPFO has stated that employers may offset part of the additional financial burden through incentives of up to ₹3,000 per month under the Central Government’s PMVBRY Scheme, subject to the prescribed conditions and KYC requirements.
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The benefit is available for up to two years in the non-manufacturing sector and up to four years in the manufacturing sector for job creation.
[Notification under the Code on Social Security, 2020, dated 17-9-2026]
[EPFO Notification, dated 17-9-2026]
