The Standing Conference of Public Enterprises said the Cabinet decision, approved on the proposal of the Ministry of Labour & Employment, marks a major expansion of statutory social security coverage for salaried employees. The revised wage ceiling is expected to bring more than 51 lakh additional employees under mandatory coverage of the Employees’ Provident Fund Organisation.
The decision matters because it extends long-term financial protection to a wider section of workers who form part of India’s organised economy. By increasing the wage threshold, the government has widened access to provident fund savings, pension support and insurance benefits for employees who were previously outside mandatory EPFO coverage.
SCOPE described the decision as a progressive step that will support workforce formalization, improve worker productivity and strengthen employee retention across organisations. The apex body said wider social security coverage can help build a more stable workforce and contribute to the national goal of Viksit Bharat@2047.
The proof of scale lies in the numbers. The wage ceiling for mandatory EPFO coverage rises by Rs. 10,000 per month, from Rs. 15,000 to Rs. 25,000. More than 51 lakh additional employees are expected to come under EPFO coverage, gaining access to provident fund, pension and insurance protection. The source did not specify an investment amount or implementation timeline.
“A stronger safety net means a more secure, invested workforce,” SCOPE said, describing the Cabinet decision as a significant stride toward Viksit Bharat@2047.
SCOPE said it has been working continuously for the welfare of India’s workforce and will continue to support policy reforms that strengthen social security and dignity of labour across organisations.
