India raises EPF wage ceiling to Rs 25,000, expanding retirement coverage

The Ministry of Labour & Employment announced that, from 17 September 2026, the mandatory EPF wage ceiling will increase to Rs 25,000 per month, up from the previous Rs 15,000 limit. This adjustment means that workers with basic salaries up to Rs 25,000 will now contribute to EPF and automatically become members of the Employees' Pension Scheme (EPS) and Employees' Deposit-Linked Insurance (EDLI). Employer contributions will rise to Rs 3,917 monthly, with Rs 2,083 earmarked for EPS.

While the move expands social security coverage for millions, analysts highlight persistent EPS administration problems that could affect pension accruals and withdrawal rights. Experts such as Puneet Gupta and Kunal Kabra stress the need for better record-keeping and system reforms to prevent future disputes. The policy reflects an effort to modernise retirement benefits in line with rising wages and demographic shifts.