According to officials, the limits will increase to 50% for indoor events and gatherings and 75% for outdoor gatherings effective Monday, May 17.
The changes announced by Gov. Wolf on Tuesday do not impact Philadelphia.
Officials in Philadelphia also announced their own changes to COVID-19 restrictions on Tuesday. Mayor Jim Kenney said the city will drop its "safer at home" restrictions on June 11.
"As more Pennsylvania adults get vaccinated and guidance from the CDC evolves, we can continue to move forward with the commonwealth's reopening efforts," said Wolf. "We recognize the significant strain businesses have faced during COVID-19 mitigation efforts. Throughout the last year and half, we have seen businesses continue to put the safety of their patrons first and I believe they will continue to do so even with this capacity increase."
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This update will not prevent municipalities, schools, restaurants and venues from continuing and implementing stricter mitigation efforts, officials said.
Based on current CDC guidance, social distancing is strongly recommended for municipalities, school districts, restaurants, and venues.
Face coverings are still to be worn indoors and outdoors in accordance with CDC guidance.