The Ministry of Labour and Employment is examining a proposal to revise and standardise the wage ceilings for the Employees Provident Fund Organisation (EPFO) and the Employees’ State Insurance Corporation (ESIC), following a recent directive from the Supreme Court of India and persistent demands from labour unions, according to various reports.

At present, the EPFO wage ceiling is ₹15,000 per month, while the ESIC threshold stands at ₹21,000. The government is reportedly considering revising and harmonising both limits to a uniform monthly level between ₹25,000 and ₹30,000.

The proposal is expected to align social security thresholds with current wage realities, addressing inflationary effects and rising minimum wages after more than a decade. Standardising the ceilings would also remove a long-standing disparity that has kept a significant section of salaried employees outside comprehensive social security coverage.

Currently, EPFO has around 8.5 crore contributing members, while ESIC provides coverage to approximately 3.25 crore insured persons. Including dependants, ESIC benefits nearly 14 crore individuals.

The wage ceiling determines the maximum salary on which contributions to the Provident Fund, Employees’ Pension Scheme (EPS) and Employees’ Deposit Linked Insurance (EDLI) are calculated. Employees earning above ₹15,000 are not mandatorily covered under EPFO, and participation remains voluntary. The last revision to the EPFO wage ceiling was carried out in 2014. At present, both employers and employees contribute 12 per cent each of the employee’s basic pay and dearness allowance, with 8.33 per cent of the employer’s share allocated to EPS and 3.67 per cent credited to the provident fund.

The Supreme Court earlier directed the Centre to take a decision within four months on revising the EPFO wage ceiling, citing significant wage growth and inflation. Petitioners contended that the existing limit is outdated and does not reflect minimum wage growth, inflation or per capita income trends, while also pointing to parliamentary committee recommendations and expert assessments.

Any upward revision is likely to broaden coverage and enhance retirement security for employees, while increasing the total beneficiary base for both schemes. In comparison, ESIC last revised its wage ceiling in 2017, raising it from ₹15,000 to ₹21,000 per month. A higher ceiling of ₹25,000 currently applies to Persons with Disabilities employed in establishments with 10 or more workers. Unlike EPFO, ESIC coverage is mandatory.