The Union Cabinet has raised the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation
(EPFO) from ₹15,000 to ₹25,000 per month, widening the social-security net for millions of workers. The revised ceiling
came into effect from 17 September 2026. The Government expects the move to bring more than 51 lakh additional employees
under mandatory EPFO coverage, with many from the private security industry.
The ceiling had remained unchanged since September 2014. Under the earlier provision, employees joining an establishment
at wages above ₹15,000 were not automatically covered under mandatory EPF, subject to applicable statutory provisions.
With the revised ceiling, employees in the ₹15,000–₹25,000 wage band will come within the mandatory social-security
framework, with access to EPF, Employees’ Pension Scheme (EPS) and Employees’ Deposit Linked Insurance Scheme (EDLI), as
applicable.
The development has particular relevance for the private security industry, where a substantial workforce is employed in
wage bands around the new threshold. For security service providers, the immediate implication is the need to identify
employees who will now fall within mandatory EPFO coverage and assess the resulting impact on manpower costs, payroll
and existing contracts. The financial impact can be significant. At a PF wage of ₹25,000, a 12% contribution amounts to
₹3,000 per month from the employee and an equivalent 12% employer contribution, subject to the applicable statutory
allocation between EPF and EPS.