For some time now, there have been reports of the central government weighing a hike in the wage ceiling from Rs 15,000 to Rs 25,000.
Published: April 15, 2026 5:18 PM IST
Many workers in Haryana and Uttar Pradesh may not receive the benefits of Employees’ Provident Fund Organisation (EPFO) any longer. This is because the governments of the respective states have increased the minimum wage. Meanwhile, the basic salary limit for mandatory EPFO contributions is currently Rs 15,000. However, in Ghaziabad and Gautam Buddha Nagar, the wages of semi-skilled and skilled workers have exceeded Rs 15,000 since April 1. In a similar situation, the basic minimum salary for unskilled workers has been increased to Rs 15,220.
Since the current notification for workers has exceeded the limit, EPFO coverage will now be voluntary for workers. The minimum wage for semi-skilled and skilled workers stands at Rs 15,000 – Rs 20,000 in most states and union territories, according to official data, while in Kerala and Delhi it is about Rs 22,000 in some sectors.
Will government raise EPF wage limit?
There has been reports of the central government considering raising the wage ceiling from the current Rs 15,000 to Rs 25,000 for some time now. However, due to opposition from companies, there has been little progress in this. But keeping the current situation in mind, it is believed that the government may move forward with this plan.
Experts note that Haryana’s increase in minimum wage reflects a growing trend. With minimum wages in many states and UTs exceeding the EPFO’s threshold, the organisation has been compelled to revise the limit to expand coverage. This threshold has not been updated since September 2024.
The proposal of the increased EPF wage ceiling has been put on fast-track after the Supreme Court earlier this month directed the Employees’ Provident Fund Organisation (EPFO) to increase the wage ceiling in four months. If approved, the new EPF wage ceiling will become applicable from April 1, 2026
Who is set to benefit from this?
According to experts, those with higher-income are increasingly favoured in EPFO coverage. Following the recent revision in Haryana, companies can skip rules related to workers who need social security the most. Experts state that the biggest concern with minimum wages is non-compliance. Contractors and companies don’t pay the prescribed minimum basic salary anyway.
The Provident Fund is a required government savings programme for private sector workers. The employee as well as the employer contribute 12 per cent of their basic salary to the EPF account. Meanwhile, Of the employer’s contribution, 8.33 per cent goes to the Employees’ Pension Scheme (EPS). Interest is earned on the amount deposited in the EPF account.
