India's social security coverage rises to 68.4% in 2026, covering over one billion people. EPFO wage ceiling increased to Rs 25,000, benefiting 51 lakh additional employees.
New Delhi: India has significantly expanded its social security framework, with coverage increasing from 19 per cent in 2015 to 68.4 per cent in 2026, bringing more than one billion people under the social protection system, according to the Ministry of Labour and Employment.
The expansion is being driven by wider provident fund coverage, pension reforms, digital service delivery and welfare initiatives targeting workers in both organised and unorganised sectors, including gig and platform-based workers.
In a major step towards expanding formal social security coverage, the government revised the mandatory wage ceiling for Employees' Provident Fund Organisation (EPFO) coverage from Rs 15,000 to Rs 25,000 per month in September 2026.
The revision is expected to bring more than 51 lakh additional employees under mandatory EPFO coverage, subject to applicable statutory provisions.
The move is aimed at extending provident fund and related social security benefits to a larger section of employees in line with changing wage levels.
The EPFO provides social security through three major schemes:
According to government figures, the number of contributing EPFO members increased from 3.49 crore in 2014-15 to approximately 7.98 crore as of September 16, 2026.
The number of establishments contributing to EPFO stood at 7.68 lakh in September 2026.
Pension coverage has also expanded, with the number of pensioners increasing from 51.04 lakh in 2014-15 to around 82 lakh as of September 2026.
The number of claims settled rose from 1.30 crore in 2014-15 to 6.42 crore in the one-year period up to October 2026.
EPFO has introduced several changes to make access to provident fund savings easier and reduce procedural delays.
The organisation consolidated 13 provisions governing partial withdrawals into three categories: Essential Needs, Housing Needs and Special Circumstances.
The number of permitted partial withdrawals has been increased to 10 for education and five for marriage. Earlier, both purposes shared a combined limit of three withdrawals.
Under the revised framework introduced in October 2025, eligible members can withdraw up to 75 per cent of their PF balance, including employee and employer contributions, subject to prescribed conditions. The minimum service requirement has been standardised at 12 months.
The auto-settlement limit for eligible advance claims has also been increased to Rs 5 lakh. EPFO has removed the requirement to upload cheque-leaf images or attested bank passbooks for eligible online claims.
EPFO has introduced two initiatives to improve compliance and reduce administrative difficulties for employers.
VISHWAS 2026: The scheme provides a one-time settlement mechanism for eligible disputes involving damages or penalties under the EPF and Miscellaneous Provisions Act, 1952, and the Code on Social Security, 2020. It aims to reduce litigation and encourage voluntary compliance through a digital and time-bound process.
AMNESTY 2026: This one-time initiative helps eligible establishments regularise provident fund trusts recognised under the Income Tax Act but lacking formal exemption under the relevant EPF legislation. The scheme remains open until December 28, 2026.
Digital initiatives are playing an important role in simplifying registration, withdrawals, pension disbursement and claim processing.
Since November 2019, workers have been able to generate their Universal Account Number (UAN) independently. In April 2025, EPFO introduced UAN generation and activation through Aadhaar-based Face Authentication Technology on the UMANG application.
As of October 2026, approximately 1.74 crore UANs had been self-generated.
Other initiatives include:
The government's social security framework also covers workers outside conventional employer-employee arrangements.
The e-Shram portal, launched in August 2021, created India's first Aadhaar-seeded National Database of Unorganised Workers. It recorded 31.89 crore registrations as of August 2026.
The e-Shram One-Stop Solution, launched in October 2024, integrates 15 social security and welfare schemes. It also connects workers with platforms such as the National Career Service, Skill India Digital Hub and myScheme.
The Pradhan Mantri Shram Yogi Maandhan (PM-SYM) is a voluntary contributory pension scheme for eligible unorganised workers aged between 18 and 40 years, with monthly incomes of up to Rs 15,000.
Under the scheme, beneficiaries receive an assured minimum monthly pension of Rs 3,000 after attaining 60 years of age, subject to prescribed conditions.
Monthly contributions range from Rs 55 to Rs 200, depending on the age of enrolment, with an equal contribution from the Central Government.
The Pradhan Mantri Samajik Sahayata Yojana, revised from the existing National Social Assistance Programme (NSAP) in October 2026, provides financial assistance to eligible elderly persons, widows, persons with disabilities and bereaved families.
The scheme is set to continue from 2026-27 to 2030-31.
Its key benefits include:
The benchmark disability threshold for pension eligibility has been reduced from 80 per cent to 40 per cent, while the minimum age criterion has been removed.
The Code on Social Security, 2020 consolidates nine existing central labour laws relating to social security into a unified legislative framework.
It provides for benefits such as provident fund, pension, insurance, maternity benefits and gratuity, with provisions extending to organised and unorganised workers, including gig and platform workers.
The Code also provides for social security schemes for gig and platform workers, supported by a dedicated social security fund.
Other provisions include proportionate gratuity for eligible fixed-term employees after one year of service, subject to applicable conditions.
Women-centric provisions include maternity benefits of up to 26 weeks for eligible women, the option of working from home where the nature of work permits and crèche facilities in establishments meeting prescribed conditions.
The expansion of these schemes and reforms reflects the government's efforts to extend financial protection across different categories of workers and vulnerable sections of society.
