The Union Cabinet has approved the enhancement of the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) to Rs 25,000 per month from Rs 15,000.The move is expected to bring more than 51 lakh additional employees under the EPFO’s statutory social security framework, expanding coverage for workers, according to the Ministry of Labour and Employment.The EPFO wage limit had remained unchanged between 2004 and 2014, before being raised to Rs 15,000 in September 2014. The latest decision follows the same approach of periodically updating the ceiling, with the new Rs 25,000 limit intended to account for wage growth, higher incomes and the expansion of formal employment over the years.Under the existing threshold, employees joining a job at a wage above Rs 15,000 a month are not automatically brought under the EPF framework. As a result, they can remain outside the mandatory provident fund, pension and related insurance coverage.”The higher ceiling will widen access to provident fund savings, pension benefits under the Employees’ Pension Scheme (EPS) and insurance protection through the Employees’ Deposit Linked Insurance Scheme (EDLI), subject to the applicable provisions. It will also bring the statutory contribution and pensionable-wage framework closer to prevailing salary levels,” the ministry said.In several states and occupations, minimum wages have moved closer to the existing threshold.The increase to Rs 25,000 is therefore intended to align the EPFO framework with prevailing wage levels and extend formal social security benefits to a wider segment of the workforce, it said.For employers as well, experts feel wider social security coverage can support employee retention, workforce stability, morale and the development of a more secure and future-ready workforce.Meanwhile, the proposal underwent detailed inter-ministerial consultations and was recommended by the Expenditure Finance Committee.According to the Labour Ministry, the annual government outgo following the move is estimated at about Rs 11,339 crore, against the existing annual budgetary support of about Rs 10,250 crore. The estimated expenditure over five years is approximately Rs 56,696 crore, it said.EPFO data show around 7.98 crore contributing members across about 7.68 lakh establishments, while the EPS provides pension benefits to around 82 lakh pensioners.