GENERAL16 Sept 2026
Union Cabinet approves raising EPFO wage ceiling to ₹25,000 per month
The Union Cabinet has raised the EPFO wage ceiling to ₹25,000 a month from ₹15,000. Employers must now bring more staff under provident fund, the Employees' Pension Scheme and the insurance scheme. This adds over 51 lakh workers, and employer contribution rises by about ₹600 per employee. Check your payroll and update your salary structure.
Key Statutory Highlights
- The Union Cabinet approved raising the wage ceiling for mandatory EPFO coverage to ₹25,000 per month from ₹15,000.
- More than 51 lakh additional employees will come under mandatory EPFO coverage, gaining provident fund savings, pension protection and insurance protection.
- Employer contribution will increase by ₹600 per employee, and the annual government outgo is estimated at about ₹11,339 crore.
Actionable Advice for Taxpayers / Founders:Review your payroll and employee salary records to see whose pay now falls within the ₹25,000 mandatory EPFO limit, and plan your budget for the higher employer contribution. Please confirm your exact liability with a tax professional before you change your payroll setup.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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