The Labour Ministry is developing a comprehensive proposal to substantially increase the Employee Provident Fund Organisation (EPFO) wage ceiling, a development that could transform social security coverage for millions of Indian workers. Government sources have confirmed that the ministry is working on raising the current ceiling from ₹15,000 to a range of ₹25,000-30,000 per month.

Proposed EPFO Wage Ceiling Changes

The proposed revision represents a significant enhancement to the existing framework, as outlined below:

Impact on Social Security Coverage

The proposed wage ceiling increase is expected to deliver substantial benefits to the salaried workforce. The enhancement would expand social security coverage significantly, bringing more employees under the EPFO umbrella who were previously excluded due to higher salary structures. This expansion would particularly benefit middle-income employees whose salaries exceed the current ₹15,000 threshold.

Retirement Savings Enhancement

The proposed changes would directly impact retirement planning for millions of workers. Higher wage ceilings would enable increased provident fund contributions, leading to enhanced retirement corpus accumulation. Employees earning between ₹15,000 and the proposed new ceiling would benefit from mandatory employer and employee contributions on their entire eligible salary, rather than being capped at the current limit.

Policy Development Status

According to government sources, the Labour Ministry is actively preparing this fresh proposal as part of broader social security reforms. The initiative reflects the government's commitment to strengthening retirement security infrastructure and adapting to changing salary structures in the Indian job market.

The Ministry of Labour and Employment has unveiled comprehensive draft rules establishing eligibility criteria for gig and platform workers to access social security benefits under the Social Security Code 2020. Published on December 31, these rules introduce a structured framework requiring minimum work thresholds and mandatory registration processes. The initiative aims to extend social security coverage to India's growing gig economy workforce while ensuring systematic implementation through digital platforms.

Work Threshold Requirements

The draft Code on Social Security (Central) Rules, 2025 establishes specific minimum engagement periods that gig and platform workers must meet to qualify for social security benefits. The framework differentiates between single and multiple aggregator arrangements to accommodate diverse working patterns in the gig economy.

The rules specify that a worker is considered engaged for one day if they earn any income, regardless of amount, from work performed with an aggregator on that calendar day. For workers engaged with multiple aggregators, days are calculated cumulatively across all platforms. The Labour and Employment Ministry clarified that if a worker operates with three different aggregators on the same day, this counts as three separate engagement days.

Registration and Documentation Framework

All gig and platform workers aged 16 years and above must register on the designated government portal using Aadhaar and other prescribed documents. The registration process operates on a self-declaration basis under section 113 of the Code. Upon successful registration, workers receive digital or physical identity cards containing photographs and specified details, downloadable from the portal.

Workers must regularly update their particulars including address, occupation, mobile number, and skills as specified by the government. Failure to maintain current information may result in ineligibility for social security scheme benefits. Eligible workers include those engaged directly by aggregators or through associate companies, holding companies, subsidiaries, limited liability partnerships, or third parties.

Aggregator Obligations and Compliance

Aggregators bear significant responsibilities under the new framework, including quarterly data sharing and contribution management. They must electronically share details of engaged gig and platform workers on the government's designated portal at specified intervals. This includes workers engaged directly or through associate companies, holding companies, subsidiaries, limited liability partnerships, or third parties.

Upon rule commencement, aggregators must immediately share existing worker details for Universal Account Number generation. The rules establish a dedicated Social Security Fund with separate accounts for gig worker contributions. Aggregators failing to make timely contributions face a 1.00% monthly interest penalty on overdue amounts until full payment.

Implementation Timeline and Background

The Social Security Code 2020, along with three other labour codes, received notification on November 21, 2025. The draft rules are currently pre-published for stakeholder feedback, indicating the government's commitment to inclusive policy development. This regulatory framework represents a significant step toward formalizing social security coverage for India's expanding gig economy workforce.

The comprehensive approach addresses registration, eligibility, compliance, and enforcement mechanisms while establishing clear responsibilities for both workers and platform aggregators. The digital-first approach through designated government portals reflects modern administrative practices suited to the technology-driven gig economy sector.