PrepMaticCurrent affairs · September 2026
Cabinet raises EPFO wage ceiling from ₹15,000 to ₹25,000 a month
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved on 16 September 2026 a proposal of the Ministry of Labour and Employment to raise the wage ceiling for mandatory Employees' Provident Fund Organisation (EPFO) coverage from ₹15,000 to ₹25,000 a month. More than 51 lakh additional employees are expected to come under mandatory coverage.
What changes
At present, an employee who joins at a wage above ₹15,000 a month is not automatically covered under the EPF framework. After the change, employees earning between ₹15,000 and ₹25,000 fall within the statutory social security net. That brings them provident fund savings, pension protection under the Employees' Pension Scheme (EPS) and insurance under the Employees' Deposit Linked Insurance Scheme (EDLI), as per the scheme provisions.
| Point | Detail |
|---|---|
| Old ceiling | ₹15,000 a month, set in September 2014 |
| New ceiling | ₹25,000 a month |
| Extra employees covered | More than 51 lakh |
| Annual government outgo | About ₹11,339 crore, against about ₹10,250 crore in existing support |
| Estimated five-year expenditure | About ₹56,696 crore |
The release notes that the ceiling stayed unchanged from 2004 to 2014 and was then raised to ₹15,000 in September 2014. The Expenditure Finance Committee recommended the proposal on 16 June 2026.
Why it matters for exams
Social security schemes, EPFO and EPS are common in general awareness for banking exams and in current events and economy for TNPSC, especially the Labour and Employment ministry's schemes. See the current affairs guide for TNPSC for how to file such decisions in your monthly notes.
Practice questions
Question 1
To what level did the Cabinet raise the EPFO wage ceiling for mandatory coverage?
- A. ₹15,000 a month
- B. ₹20,000 a month
- C. ₹25,000 a month
- D. ₹30,000 a month
Question 2
Which ministry's proposal did the Cabinet approve on the EPFO wage ceiling?
- A. Ministry of Finance
- B. Ministry of Labour and Employment
- C. Ministry of Corporate Affairs
- D. Ministry of Social Justice and Empowerment
Answers
- C. The ceiling rises from ₹15,000 to ₹25,000 a month.
- B. The proposal came from the Ministry of Labour and Employment.
Source
Find your weak TNPSC units before the exam does
Take a free TNPSC assessment on PrepMatic. It shows where you stand across General Tamil, General Studies and Aptitude, then builds a day-by-day study plan and mock tests focused on your weak subjects.
Start free assessment →Free forever plan · No credit card · 2-minute setupRelated
- GST Council 57th meetingThe 57th GST Council meeting on 8 October 2026 recommended removing arrest powers, a Rs 5 crore prosecution limit and automated refunds.
- SME Growth Fund 2026The Union Cabinet approved a Rs 10,000 crore commitment to the SME Growth Fund on 6 October 2026 to invest growth equity directly in small and medium firms.
More in September 2026
- Group 1 prelims hall ticketTNPSC hosted the Group 1 prelims hall tickets on 17 September 2026 for the 27 September OMR exam at 38 district centres. How to download yours.
- Exercise Yudh Abhyas 2026The 22nd India-US Exercise Yudh Abhyas began on 15 September 2026 at Auli and Mahajan with 600 personnel each, focusing on mountain warfare and drones.
- CM's UK visit 2026Chief Minister C. Joseph Vijay's UK visit produced MoUs and a letter of intent worth ₹15,300 crore, led by Samvardhana Motherson at ₹11,000 crore.
- PLFS bulletin, August 2026MoSPI's PLFS bulletin for August 2026 shows an unemployment rate of 5.0%, LFPR of 55.6% and female LFPR of 34.8% for people aged 15 and above.
- Revenue Augmentation CommitteeThe Montek Singh Ahluwalia panel on raising Tamil Nadu's own tax and non-tax revenue met in Chennai on 18 September 2026. What it is and what to know.
- Digital DL and RC 2026From 15 September 2026 Tamil Nadu issues driving licences and registration certificates in digital form. Where to download them and what the help desks do.
- Exercise Nomadic Elephant 2026The 18th India-Mongolia exercise Nomadic Elephant ran from 21 September to 3 October 2026 at Pithoragarh with 45 troops each, on counter-insurgency drills.
- UPI MDR framework 2026Government clarified on 15 September 2026 that UPI stays free for person-to-person payments and merchant payments up to Rs 2,000. MDR rates explained.