Thousands of employees working in Uttarakhand are set to come under a wider Employees’ Provident Fund Organisation (EPFO) coverage framework after the central government raised the monthly wage ceiling for mandatory EPFO coverage from ₹15,000 to ₹25,000. The change is expected to bring around 40,000 additional employees in the state under EPFO’s mandatory social security system. Eligible employees will be able to access regular provident fund savings along with social security benefits under the Employees’ Pension Scheme (EPS) and Employees’ Deposit Linked Insurance Scheme (EDLI).
The central government announced the decision to raise the wage ceiling for mandatory EPFO coverage on September 16, 2026. Information released by the central government on September 17 stated that the mandatory coverage limit had been increased from ₹15,000 to ₹25,000 per month. According to the government, more than 51 lakh additional employees across the country could be brought under EPFO’s mandatory social security system following the change. The ceiling was last increased in 2014, when it was raised from ₹6,500 to ₹15,000, and has been revised again after around 12 years.
The change has implications for a large number of employees in Uttarakhand whose wages were above the earlier ₹15,000 threshold but who were not automatically covered under the mandatory EPFO framework because of the gap between their wages and the coverage ceiling. Employees earning between ₹15,000 and ₹25,000 per month who meet the applicable eligibility criteria can now come under EPFO’s social security framework. According to Regional Provident Fund Commissioner-1 VVB Singh, around 40,000 additional employees in Uttarakhand are expected to benefit from the change.
The revised coverage will enable eligible employees to make regular provident fund savings through contributions deposited by employees and employers in accordance with applicable rules. The framework also provides social security through EPS and insurance coverage under EDLI, subject to the provisions of the respective schemes. The central government has clarified that employees covered under the new ceiling will receive PF savings, EPS pension and EDLI insurance coverage in accordance with the applicable scheme provisions.
The revised ₹25,000 ceiling is the wage limit for mandatory EPFO coverage. It does not mean that every employee will immediately become entitled to a pension calculated on a salary of ₹25,000. The actual pension benefit will depend on the employee’s eligibility, pensionable service, contributions and the applicable rules of the Employees’ Pension Scheme. The revised ceiling therefore expands the number of employees who can come under the social security framework, while the pension amount will depend on each employee’s service and the applicable calculation mechanism.
The impact of the EPFO decision extends beyond pension benefits after retirement. Regular savings in a PF account provide a long-term financial base during an employee’s working years, while insurance coverage is linked to a mechanism that provides financial assistance to eligible family members in circumstances such as the employee’s death. The higher wage ceiling will therefore enable eligible employees to access different components of the social security framework.
The EPFO regional office in Dehradun has also appealed to employers to enrol employees who have become eligible under the revised wage ceiling and deposit their contributions in accordance with the rules. The objective is to ensure that the benefit of the revised ceiling translates into actual inclusion of eligible employees in PF, pension and insurance coverage.
According to EPFO data, around 9,744 contributing establishments and more than 7.74 lakh contributing members were covered under the EPFO framework in the Uttarakhand region in July 2026. The higher wage ceiling is expected to further expand the social security coverage in the state, particularly among establishments and employees whose wages were above the earlier ₹15,000 threshold but fall within the new ₹25,000 limit.
EPFO is also focusing on the formalisation of employment. The government’s Pradhan Mantri Viksit Bharat Rozgar Yojana aims to encourage additional employment generation while connecting new employees with organised employment and social security systems. Regional EPFO officials have also stated that around ₹19 crore was distributed to eligible employees and employers in the Garhwal region of Uttarakhand during the first instalment of the scheme.
In addition, EPFO is conducting the Employee Enrolment Campaign-2026. The campaign aims to bring eligible employees who have remained outside the EPFO framework for various reasons under its coverage. Under the campaign, employers have been given an opportunity, subject to certain conditions, to enrol eligible employees with retrospective effect. According to EPFO Dehradun, the campaign is available until October 31, 2026. This period is relevant for employees who fall within the revised wage ceiling.
EPFO is also taking steps concerning outstanding payments and the resolution of older disputes. The Dehradun regional office has received 54 applications involving ₹70 lakh under the ‘Vishwas Yojana’, according to information provided by the office. The scheme provides for reducing penal losses in certain cases involving delayed payment of EPF dues. Its objective is to accelerate the resolution of older cases and encourage employers to regularise pending EPF liabilities.
According to the central government, raising the mandatory EPFO coverage ceiling nationwide could bring more than 51 lakh additional employees under social security. The government estimates that the change will also increase government expenditure because budgetary support will be required to include additional employees in the social security system. The Centre has estimated annual government expenditure of around ₹11,339 crore for the purpose, compared with existing budgetary support of around ₹10,250 crore. The estimated additional expenditure over five years has been put at around ₹56,696 crore.
The potential inclusion of around 40,000 employees in Uttarakhand under the revised ceiling represents a change in the state’s formal employment and social security coverage. Employees whose monthly wages or salaries were above ₹15,000 and who were therefore outside mandatory EPFO coverage can now be considered for inclusion if they fall within the revised ceiling and meet the applicable eligibility conditions. This will provide eligible employees with an institutional framework for savings during employment and retirement-related social security.
Employees should check their EPFO coverage and eligibility status with their employers. If an employee falls within the revised ₹25,000 ceiling and the concerned establishment is covered by EPFO, the employer is required to complete the membership and contribution process in accordance with applicable rules. EPFO officials have also appealed to employers to enrol eligible employees under the revised ceiling and deposit contributions on time.
The increase in the mandatory EPFO coverage ceiling from ₹15,000 to ₹25,000 is expected to expand social security coverage to around 40,000 additional employees in Uttarakhand. Eligible employees covered under the revised framework will receive PF savings, pension-related social security under EPS and insurance coverage under EDLI in accordance with the applicable scheme rules. The revision of the ceiling after it remained at ₹15,000 since 2014 is expected to increase the number of employees covered by organised employment and social security systems in the state.
