EPFO Wage Ceiling Hike 2026: Will govt raise EPFO and ESIC wage ceilings? Here’s what you must know

EPFO Wage Ceiling Hike 2026: On Friday, February 6, Union Labour Minister Mansukh Mandaviya said the Ministry of Labour and Employment is ready to soon take a decision to hike the wage ceilings in the Employees’ Provident Fund Organisation (EPFO) and Employees’ State Insurance Corporation (ESIC), fix a floor rate, and hike the minimum pension in the Employees’ Pension Scheme, 1995 (EPS).

In his address to the 21st All India Triennial Conference of Bharatiya Mazdoor Sangh (BMS), in Puri, Odisha, Mandaviya said these matters have been raised in recent meetings with the Centre. These matters will be reviewed in the interest of workers.

EPFO Wage Ceiling Hike 2026: Will govt raise EPFO and ESIC wage ceilings?

At present, the salary ceiling for mandatory inclusion in the Employees Provident Fund Organisation (EPFO) is Rs 15,000, while for the Employees State Insurance Corporation (ESIC), it is Rs 21,000, and also, with respect to the minimum pension payable under the Employees Pension Scheme (EPS), it is Rs 1,000.

According to the ILOSTAT database, India has achieved some success in the area of social security coverage, with a figure of 64.3 percent in 2025, compared with just 19 per cent a decade ago.

The Central Board of Trustees (CBT) of EPFO has been considering raising the minimum wage levels for both EPFO and ESIC in some of its recent meetings, although nothing has been finalised yet on the matter.

This has still left trade unions and industry bodies with differences over what the new levels will be.

In the same statement, Mandaviya stated that the conflicts between the industry and the workers affect the progress of the country and emphasised that the industry and the workers need to work together to ensure the welfare of the workers.

He further stated that the Labour Codes will improve the coordination between the industry and the workers, equal pay will be ensured for the women as well as the men, and the discrimination in the wages of the workers will be eliminated.

While the Code on Social Security, 2020, has brought new provisions concerning social security coverage in India, it has replaced nine labour laws in the country.

As per the Code on Wages, 2019, the Centre is empowered to fix a national floor wage applicable all over the country, though the threshold is yet to be notified by the states.

In his address, the minister "reiterated that the welfare, dignity and security of workers remain central to the Government's vision of national development," the Ministry of Labour & Employment said in a statement.

Emphasising that both workers and industry are equally important for economic growth, the minister said that harmony and cooperation between the two are essential for building a strong and resilient economy.

He noted that the government has brought the Labour Codes into effect to strengthen this balance, enhance welfare provisions and social security for workers, while simplifying compliance for industries.