The Supreme Court on Monday asked the Union government to reconsider the wage ceiling under the Employees’ Provident Fund (EPF) Scheme and decide the matter within a fixed period, as per news reports.
The ceiling, set at ₹15,000 per month, determines eligibility for coverage under the Employees’ Provident Fund Organisation (EPFO) and has remained unchanged for over 11 years.
The direction was issued by a Bench of Justices J K Maheshwari and A S Chandurkar while disposing of a petition on the issue.
The plea was filed by social activist Naveen Prakash Nautiyal, who challenged the continued use of the existing ceiling.
The petition stated that employees earning above ₹15,000 per month are excluded from EPF coverage, even though wage levels across sectors have increased significantly in recent years.
It pointed out that in several states, minimum wages notified by the Centre and state governments exceed the EPF threshold.
According to the petition, the exclusion of employees earning above the ceiling has reduced the number of workers covered under the EPF framework.
It argued that the scheme, which was intended to provide social security to organised sector employees, has become increasingly restrictive due to the outdated cap.
The plea also stated that employees above the ceiling are excluded automatically, without any assessment linked to current economic conditions.
Advocates Pranav Sachdeva and Neha Rathi, appearing for the petitioner, told the court that wage structures have undergone major changes over the past decade. They submitted that the lack of revision has kept a large segment of the workforce outside the EPF net.
The petition questioned the rationale for retaining the current limit despite changes in income levels and cost of living.
The plea highlighted the absence of a fixed mechanism or timeline for revising the wage ceiling under the Employees’ Provident Fund Scheme, 1952. It said revisions over the past 70 years have been irregular and not linked to indicators such as inflation, consumer price index, per capita income or minimum wage trends.
A statistical review cited in the petition showed wide gaps between revisions.
The petition referred to recommendations made by an EPFO sub-committee in 2022, which proposed raising the wage ceiling and improving coverage.
These were approved by the Central Board of Trustees in July 2022 but are pending with the Centre. Similar observations were made earlier by the Public Accounts Committee of the 16th Lok Sabha.
The court directed the petitioner to submit a detailed representation to the central government within 2 weeks, along with a copy of the order. The Centre has been asked to consider the representation and take a decision within 4 months.
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The Supreme Court’s order brings the issue of the EPF wage ceiling back for consideration, setting a timeline for the government to review a limit that has not changed for more than a decade.
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Published on: Jan 6, 2026, 12:18 PM IST
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