India EPFO raises mandatory provident fund wage ceiling to ₹25,000

The Indian government has raised the mandatory wage ceiling for Employees' Provident Fund Organisation (EPFO) coverage from ₹15,000 to ₹25,000 per month. Effective from September 17, 2026, this change is expected to bring over 51 lakh additional employees into the social security framework, including provident fund, pension, and insurance benefits.

Under the new rules, the maximum monthly contribution at the standard 12% rate increases from ₹1,800 to ₹3,000 for both employees and employers. For those earning between ₹15,000 and ₹25,000, mandatory coverage now applies. The Ministry of Labour and Employment has issued an advisory stating that employers cannot reduce employees' take-home pay to offset these increased costs.

Additionally, the EPFO has introduced new withdrawal regulations. Members who resign or retire before age 55 must now observe a 12-month waiting period to withdraw their full balance, though they may access 75% of the funds within that year. Those aged 55 and older retain the right to immediate full withdrawal.