Government to Decide on Raising EPFO and ESIC Wage Ceilings Soon, Says Mandaviya

The Ministry of Labour and Employment is reviewing key social security parameters, including wage ceilings under EPFO and ESIC, the national floor wage, and the minimum pension under EPS, according to Union Labour Minister Mansukh Mandaviya. 

Review of EPFO and ESIC Wage Ceilings 

Speaking at the 21st All India Triennial Conference of the Bharatiya Mazdoor Sangh, Mandaviya stated that discussions are underway to revise wage limits under major social security schemes. 

At present, the EPFO wage ceiling is ₹15,000 per month, while the ESIC threshold is ₹21,000 per month. These limits determine eligibility and contribution requirements for employees and employers. 

Minimum Pension and Floor Wage Under Review 

The labour ministry is also examining the minimum pension provided under the Employees’ Pension Scheme, 1995.  

Currently, the minimum pension under EPS stands at ₹1,000 per month. In addition, the national floor wage provision under the Code on Wages, 2019 is under consideration, though a uniform threshold has not yet been notified. 

Read More: Ministry Of Labour and Employment Expands e‑Shram Platform with Integrated Social Security Access! 

Social Security Coverage and Stakeholder Views 

As per the ILOSTAT database, India’s social security coverage reached 64.3% in 2025, compared with 19% around 10 years earlier.  

The Central Board of Trustees of EPFO has discussed possible revisions to wage ceilings in several meetings. However, differing views from trade unions and industry bodies have delayed a consensus. 

Labour Codes and Wage Equality 

Mandaviya highlighted that the Code on Social Security, 2020 has replaced 9 earlier labour laws to streamline coverage and administration.  

He also noted that the new labour codes aim to reduce wage discrimination and ensure equal pay for men and women, while promoting coordination between employers and workers. 

Conclusion 

The government’s ongoing review of EPFO and ESIC wage ceilings, EPS pension levels, and the national floor wage reflects continued efforts to align labour regulations with evolving workforce needs. These discussions form part of broader reforms under the labour codes framework. 

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