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Topic 304 · Society, Health, Education & Schemes

EPFO wage ceiling raised to Rs 25,000

10 MCQs · tap an option to check it · All answers

Revise the 12 points first Book 1 RATNA
  1. Core Trigger: The Union Cabinet raised the EPFO mandatory wage ceiling from Rs 15,000 to Rs 25,000 a month, effective 17 September 2026.
  2. Instrument: A Labour Ministry notification under the Code on Social Security, 2020 gave effect to the change.
  3. Current Head: Mansukh Mandaviya is Union Minister of Labour and Employment.
  4. Key Term: The wage ceiling is the monthly pay limit up to which EPF membership is mandatory, with 12% contributions each from employee and employer.
  5. Data: About 51 lakh more workers come under cover; the previous revision, to Rs 15,000, was in 2014.
  6. Stakeholders: Workers, employers and the tripartite Central Board of Trustees, chaired by the Labour Minister.
  7. India Link: Wider cover extends provident fund, pension and insurance, though newly covered workers face higher deductions.
  8. Headquarters: The EPFO head office, Bhavishya Nidhi Bhawan, is in New Delhi.
  9. Founded: The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 created the EPF scheme administered by the EPFO.
  10. Landmark: The Code on Social Security, 2020 subsumes the 1952 EPF Act; the labour codes took effect in November 2025.
  11. Articles: Article 41 and Article 43 are Directive Principles on public assistance and a living wage; Entry 24, Concurrent List, covers provident funds.
  12. Doctrine: Delegated legislation: the Code lets the executive fix ceilings by notification.
Question 1 of 10

From which date does the EPFO wage ceiling of Rs 25,000 apply?

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Answer: (C) 17 September 2026

Core Trigger: The Union Cabinet raised the EPFO mandatory wage ceiling from Rs 15,000 to Rs 25,000 a month, effective 17 September 2026.From Book 1 RATNA, topic 304, point 1

Question 2 of 10

The Labour Ministry notification was issued under which law?

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Answer: (B) Code on Social Security, 2020

Instrument: A Labour Ministry notification under the Code on Social Security, 2020 gave effect to the change.From Book 1 RATNA, topic 304, point 2

Question 3 of 10

Who is Union Minister of Labour and Employment?

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Answer: (A) Mansukh Mandaviya

Current Head: Mansukh Mandaviya is Union Minister of Labour and Employment.From Book 1 RATNA, topic 304, point 3

Question 4 of 10

What share of wages do employee and employer each contribute to EPF?

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Answer: (B) 12%

Key Term: The wage ceiling is the monthly pay limit up to which EPF membership is mandatory, with 12% contributions each from employee and employer.From Book 1 RATNA, topic 304, point 4

Question 5 of 10

In which year was the previous revision, to Rs 15,000, made?

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Answer: (C) 2014

Data: About 51 lakh more workers come under cover; the previous revision, to Rs 15,000, was in 2014.From Book 1 RATNA, topic 304, point 5

Question 6 of 10

Consider the statements: 1. The Central Board of Trustees is tripartite. 2. It is chaired by the Finance Minister. Which is/are correct?

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Answer: (A) Only 1

Stakeholders: Workers, employers and the tripartite Central Board of Trustees, chaired by the Labour Minister.From Book 1 RATNA, topic 304, point 6

Question 7 of 10

Where is the EPFO head office, Bhavishya Nidhi Bhawan?

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Answer: (A) New Delhi

Headquarters: The EPFO head office, Bhavishya Nidhi Bhawan, is in New Delhi.From Book 1 RATNA, topic 304, point 8

Question 8 of 10

The EPF scheme was created by an Act of which year?

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Answer: (C) 1952

Founded: The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 created the EPF scheme administered by the EPFO.From Book 1 RATNA, topic 304, point 9

Question 9 of 10

In which month did the labour codes take effect?

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Answer: (D) November 2025

Landmark: The Code on Social Security, 2020 subsumes the 1952 EPF Act; the labour codes took effect in November 2025.From Book 1 RATNA, topic 304, point 10

Question 10 of 10

Which doctrine lets the executive fix ceilings by notification under the Code?

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Answer: (D) Delegated legislation

Doctrine: Delegated legislation: the Code lets the executive fix ceilings by notification.From Book 1 RATNA, topic 304, point 12

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