Cabinet Raises EPFO Wage Ceiling to Rs 25,000 Per Month

The correct answer is Rs 25,000. The Union Cabinet, chaired by the Prime Minister, cleared the Labour Ministry's proposal on 16 September 2026 to lift the wage ceiling for compulsory EPFO membership from Rs 15,000 a month to Rs 25,000 a month. Option A is wrong because Rs 21,000 is the threshold associated with other labour welfare rules and was never the figure approved here. Option C is wrong because Rs 30,000 goes beyond what the Cabinet sanctioned; no such ceiling was announced by the ministry. Option D is wrong because Rs 18,000 was never in the picture at all, and the old ceiling that has now been replaced stood at Rs 15,000, not at that amount. Aspirants should hold on to the pair of figures together, the old Rs 15,000 and the new Rs 25,000, because question papers usually test the jump rather than either number on its own. The change is expected to bring more than 51 lakh additional employees into the statutory social security net.

The correct answer is 17 September 2026. Dr Mansukh Mandaviya, the Union Minister of Labour and Employment and also of Youth Affairs and Sports, told a press briefing that the higher ceiling would come into force on that day, which is observed as Vishwakarma Jayanti and as Sewa Divas. Option D is the trap here: 16 September 2026 is the day the Union Cabinet approved the proposal, not the day the ceiling becomes operative, and candidates who confuse approval with effect will pick it. Option A is wrong because no October start date was announced for this measure. Option C is wrong because the government did not push the change to the beginning of a financial year; it deliberately chose a date of symbolic value to artisans and workers. Remember the pair cleanly: approval on 16 September 2026 and effect from 17 September 2026.

The correct answer is the Ministry of Labour and Employment. The Employees' Provident Fund Organisation works under this ministry, so the proposal to widen compulsory coverage came from it and was then placed before the Union Cabinet. Dr Mansukh Mandaviya, who heads the ministry, announced the details afterwards. Option A is wrong because the Finance Ministry handles taxation, budgets and financial sector regulation, not the provident fund statute. Option C is wrong because the Ministry of Social Justice and Empowerment runs welfare schemes for specific social groups and has no role in provident fund coverage. Option D is wrong because the Ministry of Corporate Affairs administers company law, not worker social security. The step widens access to provident fund savings, pension cover under the Employees' Pension Scheme and insurance cover under the Employees' Deposit Linked Insurance Scheme.