AITUC seeks ₹30,000 EPF wage ceiling, above Cabinet-approved ₹25,000 threshold

The trade union says the proposed increase from ₹15,000 to ₹25,000 is inadequate amid rising wages and prices. The Cabinet move is expected to bring 51 lakh additional workers under mandatory EPF coverage, raising payroll and compliance implications for labour-intensive retailers.

— Source publishedMon, 21 Sept, 2026, 16:44 IST·First seen Mon, 21 Sept, 2026, 16:49 IST·Source Mint · Money

What happened

EPFO · AITUC wants the newly approved EPF mandatory-coverage wage ceiling raised further to ₹30,000 from ₹25,000. The Cabinet’s increase from ₹15,000 is

Key facts

  • ₹30,000 per month
  • ₹25,000 per month
  • ₹15,000 per month
  • 51 lakh employees
  • 12 years

What changed

AITUC wants the newly approved EPF mandatory-coverage wage ceiling raised further to ₹30,000 from ₹25,000. The Cabinet’s increase from ₹15,000 is expected to cover 51 lakh additional workers, potentially affecting payroll costs and social-security compliance for Indian retailers.

Why this matters

Labour-intensive retailers should model higher EPF contributions and compliance workload as coverage may expand from the current ₹15,000 ceiling toward the Cabinet-approved ₹25,000 threshold, with unions pressing for ₹30,000.

What to watch

  • Formal government notification, effective date, establishment-size applicability, and any grandfathering of existing employees.
  • Clarification on whether the ceiling affects only mandatory coverage for new hires or also contribution treatment for existing workers.
  • Employer federation submissions seeking phased rollout, wage-cost offsets, or exemptions for MSMEs and seasonal staff.
  • Union protests or parliamentary pressure seeking a ₹30,000 ceiling and future indexation to inflation or median wages.
  • Changes in retail hiring, contract-labour billing rates, attrition, and entry-level wage growth after implementation.

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