LexUpdate - September 17, 2026

On September 16, 2026, the Union Cabinet approved the proposal of the Ministry of Labour & Employment (“L&E Ministry”) to increase the wage ceiling for mandatory coverage under the Employees' Provident Fund Organisation ("EPFO") from INR 15,000 per month to INR 25,000 per month (“Amendment”). The Amendment will be operationalised under the Code on Social Security, 2020 read with the rules, schemes, and other directions issued thereunder ("SS Code"), which governs the Employees' Provident Fund ("EPF") framework through Chapter III that applies to establishments with 20 or more employees.

• What does this mean?

Under the SS Code, employers and employees are subject to certain membership and contribution requirements prescribed under the applicable EPF, pension and deposit linked insurance schemes. The wage ceiling provided under the SS Code determines the employee coverage, and the statutory contributions payable by the employers and employees towards provident fund and other