Double Good News for PF: Free Insurance of ₹7 Lakh Could Rise to ₹10.5 Lakh

If your salary is up to ₹25,000, this news regarding the EPFO ​​is relevant to you. An increase in the wage ceiling could extend PF and pension benefits to more employees. Additionally, the EDLI insurance cover may also increase.

If you are employed, PF is likely deducted from your salary every month, making this information important for you. The government approved the decision to raise the EPFO ​​wage ceiling on September 16, 2026, and implemented it starting September 17, 2026.

The government's objective behind this decision is to encourage a larger number of employees to contribute to the PF and accumulate funds for their future financial security. Furthermore, the EDLI (Employee Deposit Linked Insurance) cover provided alongside EPFO ​​membership could also be increased. This means employees could benefit from enhanced insurance coverage in addition to future financial security.

Wage Ceiling Raised from ₹15,000 to ₹25,000

It is worth noting that the wage ceiling for mandatory EPFO ​​coverage has been raised from ₹15,000 to ₹25,000. This means that an employee earning ₹20,000 will now be included under the EPFO ​​ambit—whereas previously, employees earning more than ₹15,000 were excluded. Moreover, an increase in the insurance cover provided under EDLI is also likely.

What is the Current Insurance Cover?

Regarding EDLI, eligible EPFO ​​members currently receive a maximum insurance cover of ₹7 lakh. However, a key point is that if the new wage ceiling is also applied to EDLI, the ₹7 lakh insurance cover could see an increase.

This raises the question: to what amount might the ₹7 lakh cover be raised?

By How Much Will the Insurance Cover Increase? According to reports, the insurance cover for eligible EPFO ​​members—currently capped at ₹7 lakh—could be raised to ₹10.5 lakh, meaning employees would receive enhanced insurance protection.

Who is eligible for EDLI insurance cover?

Employees who make PF contributions are automatically covered under the EDLI scheme; no separate insurance policy needs to be purchased to avail of this benefit.
A key feature is that employees do not have to pay a single rupee for this insurance cover; the contribution is made entirely by the employer.
In the event of an employee's death during their tenure, the insurance benefit under EDLI can be claimed by their family or nominee.
While the maximum insurance cover under EDLI is currently ₹7 lakh, applying the ₹25,000 wage ceiling to the EDLI calculation could raise the maximum cover to ₹10.5 lakh.