EPF wage ceiling hiked to Rs 25,000: How much employees gain and what it costs the government
Economic Times 2 hrs ago·16 Sept 2026, 11:37 am
The government has raised the monthly wage ceiling for the Employees' Provident Fund (EPF) from Rs 15,000 to Rs 25,000. This change means that employees earning up to Rs 25,000 per month will now be mandatorily covered by the social security scheme, bringing over 51 lakh new members into the fold.
This move is expected to cost the Centre approximately Rs 11,339 crore annually. For investors, the primary implication is that employers will have to contribute a larger share to the EPF scheme. This increase in statutory liabilities could impact the operating costs of companies, particularly those with a large workforce.
Investors should monitor the impact on corporate profit margins as the new rules take effect. While the move expands social security coverage, it also signals a rise in the government's expenditure on social welfare programs.
Excerpt from Economic Times
In a significant move, the government has lifted the provident fund wage ceiling to Rs 25,000 monthly, bringing over 51 lakh new employees into the fold of social security. This adjustment is projected to cost the Centre Rs 11,339 crore annually. As a result, more individuals will benefit from mandatory coverage, but…Read the original at Economic Times
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