India, Sept. 16 -- The government approved proposal to raise the wage ceiling for mandatory coverage under the Employees' Provident Fund Organisation (EPFO) from Rs.15,000 to Rs.25,000 per month on Wednesday. The move is expected to bring more than 51 lakh additional employees under mandatory EPFO coverage, expanding access to social security benefits, according to government release.

The EPFO wage ceiling had remained unchanged between 2004 and 2014 before being raised to Rs.15,000 in September 2014. According to the release, the latest increase to Rs.25,000 takes into account sustained wage growth, rising incomes and the expansion of formal employment over the intervening years.

The higher ceiling will bring employees earning between ...