How many people in the country earn a salary of ₹25,000? This figure will leave you stunned.

The salary limit for mandatory PF coverage under the EPFO ​​has been raised from ₹15,000 to ₹25,000. Understand the math behind this startling figure and the impact it will have on the salaries and pensions of millions of employees.

The Central Government has recently raised the monthly salary threshold for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from ₹15,000 to ₹25,000. The Union Cabinet approved this proposal from the Ministry of Labour, and it is expected to directly benefit approximately 51 lakh (5.1 million) additional employees. This change will come into effect on September 17, 2026, marking the first revision to the EPFO ​​wage ceiling since 2014. However, amidst this decision, a surprising question arises: just how many people in the country actually earn a salary of ₹25,000 or more?

Who will benefit?

According to government reports and information provided by Union Minister Ashwini Vaishnaw, raising the EPFO ​​wage ceiling to ₹25,000 will bring over 51 lakh additional employees directly under the ambit of mandatory PF coverage. This implies that there are at least 51 lakh formal-sector employees whose monthly basic salary previously exceeded ₹15,000—placing them outside the legal scope of PF and pension schemes—but who now fall within the new ₹25,000 limit.

Those earning ₹25,000 are in the country’s top 10%

According to a report, if an individual in India earns ₹25,000 per month—translating to an annual income of approximately ₹3 lakh—they are counted among the top 10 percent of the country’s earners. In other words, a salary that is considered quite modest for a fresh graduate in cities is actually higher than the earnings of 90 percent of the country’s population. This figure reveals a broader picture of income inequality in India.

80% of people earn less than ₹20,000

According to data from the Periodic Labour Force Survey (PLFS), approximately 80 percent of employees in India earn less than ₹20,000 per month. Furthermore, 2024 data indicates that the average monthly earnings of an employee in India stand at around ₹21,000, whereas the average income of the self-employed is even lower—at approximately ₹13,200 per month. The situation is even more concerning for casual or daily-wage laborers, whose average monthly income hovers around just ₹9,000.

Will raising the wage ceiling change the scenario?

Increasing the EPFO ​​wage ceiling will certainly expand the scope of social security, enabling more people to access benefits such as provident funds and pensions. However, the fundamental question remains: given that 80 percent of the country’s salaried employees earn less than ₹20,000, how many people will truly benefit from a ₹25,000 limit? These figures clearly demonstrate that a large segment of India’s population still earns well below the income level generally considered sufficient for a decent standard of living.