Thousands of organised workers in Ludhiana could come under mandatory provident fund, pension and insurance coverage after the union cabinet approved an increase in the Employees’ Provident Fund Organisation (EPFO) wage ceiling from ₹15,000 to ₹25,000 a month.
The decision is particularly significant for Ludhiana, where the EPFO jurisdiction currently covers 6,965 contributing establishments and 3,60,844 contributing members, according to assistant PF commissioner Jagdish Gakhar.
The Centre expects the nationwide move to bring more than 51 lakh additional employees under mandatory EPFO coverage. The higher ceiling will bring employees drawing wages between ₹15,000 and ₹25,000 a month within the statutory social security framework, subject to the applicable provisions.
For workers, the expansion means access to provident fund savings, pension benefits under the Employees’ Pension Scheme (EPS) and insurance protection under the Employees’ Deposit Linked Insurance Scheme (EDLI).
Gakhar said the increase in the ceiling was expected to encourage employers in Ludhiana to participate in the expanded social security framework, potentially resulting in a significant rise in the number of covered establishments and members in the jurisdiction.
The wage ceiling had last been revised in September 2014, when it was increased to ₹15,000. The government said the latest revision takes into account the rise in wages and incomes and the expansion of formal employment over the intervening years.
{{/usCountry}}The wage ceiling had last been revised in September 2014, when it was increased to ₹15,000. The government said the latest revision takes into account the rise in wages and incomes and the expansion of formal employment over the intervening years.
{{/usCountry}}At present, employees joining a job at a wage above ₹15,000 a month are not automatically covered under the EPF framework. The revised ceiling is intended to bring a substantial section of workers in the ₹15,000– ₹25,000 wage bracket into mandatory coverage.
The move is also expected to strengthen employment formalisation and provide workers with greater long-term retirement security. The government said wider social security coverage could also help employers with employee retention, workforce stability and morale.
The proposal was examined through inter-ministerial consultations and was recommended by the expenditure finance committee at its meeting on June 16, 2026.
Gakhar added that the government’s annual financial outgo under the revised framework is estimated at around ₹11,339 crore, compared with existing annual budgetary support of about ₹10,250 crore. The estimated expenditure over five years is ₹56,696 crore.
The EPFO currently has around 7.98 crore contributing members across 7.68 lakh contributing establishments nationwide, while around 82 lakh pensioners receive benefits under the EPS.