Why it is in the news
On 16 September 2026, the Union Cabinet chaired by Prime Minister Narendra Modi approved raising the mandatory EPFO wage ceiling from ₹15,000 to ₹25,000 per month for the Employees' Provident Fund (EPF), Employees' Pension Scheme (EPS) and Employees' Deposit Linked Insurance (EDLI) Scheme. The Cabinet expects over 51 lakh additional employees in the ₹15,000–25,000 wage band to come under compulsory EPFO coverage.
The exam angle
Issue: Can compulsory social security keep pace with wage growth without raising labour costs enough to slow formal hiring?