EPFO Wage Ceiling Revised
The statutory wage ceiling has been increased from ₹15,000 to ₹25,000 per month, effective from 17 September 2026.
The revised ceiling applies to the statutory coverage framework for:
- EPF – Employees' Provident Fund
- EPS – Employees' Pension Scheme
- EDLI – Employees' Deposit Linked Insurance Scheme
This remains subject to applicable statutory and scheme conditions.
Employees whose applicable PF wages are above ₹15,000 and up to ₹25,000 may come within the expanded mandatory coverage, subject to applicable conditions.
Where wages are below ₹25,000, contributions are determined with reference to the applicable wages.
Where wages exceed ₹25,000, the statutory contribution may generally be restricted to the prescribed ceiling, subject to applicable provisions and existing higher-wage arrangements.
PF contribution is determined with reference to the applicable statutory definition of wages and relevant EPF provisions.
From 17 September 2026, an employee falling within the revised mandatory coverage requirements is required to be made a member of EPF, EPS and EDLI, subject to applicable provisions.
The revised statutory ceiling does not require members to submit a separate application. The employer is responsible for enrolment and commencement of compliance for eligible employees.
The employee is covered under EPF, EPS and EDLI because the relevant PF wages are ₹25,000, irrespective of the higher gross salary.
For existing employees, contributions should be calculated separately for the two periods, as applicable.
The applicable contribution must be calculated by taking both wage-ceiling periods into account.
The September 2026 return is ordinarily due by 15 October 2026.
Yes. Where the additional employee contribution could not be deducted in the September payroll, recovery may be deferred to the next payroll cycle for take-home salary computation, as stated in the FAQ.
However, the September ECR and full statutory remittance must still be completed within the prescribed timeline.
| Contribution | Rate | Amount |
|---|---|---|
| Employee EPF | 12% | ₹2,400 |
| Employer EPS | 8.33% | ₹1,666 |
| Employer EPF | 3.67% | ₹734 |
| Total | 24% | ₹4,800 |
| PF Wage | Employee EPF 12% |
Employer EPS 8.33% |
Employer EPF 3.67% |
EDLI 0.5% |
Admin 0.5% |
|---|---|---|---|---|---|
| ₹10,000 | ₹1,200 | ₹833 | ₹367 | ₹50 | ₹50 |
| ₹15,000 | ₹1,800 | ₹1,250 | ₹550 | ₹75 | ₹75 |
| ₹20,000 | ₹2,400 | ₹1,666 | ₹734 | ₹100 | ₹100 |
| ₹25,000 | ₹3,000 | ₹2,083 | ₹917 | ₹125 | ₹125 |
CTC itself is not a statutory concept for determining PF liability. PF contributions are determined with reference to the applicable statutory wage definition and relevant provisions.
Where contributions were previously restricted to ₹15,000 despite higher applicable PF wages, the revised ceiling may increase EPF, EPS, EDLI and applicable administrative charges.
The employer's statutory contribution cannot simply be treated as an employee deduction merely by describing it as part of CTC.
Where PF contributions are required on the revised applicable PF wage, the employee contribution may increase.
₹20,000 × 12% = ₹2,400
The revised ceiling expands the scope for EPS coverage and permits pensionable wages to be considered up to the revised statutory ceiling, subject to applicable EPS provisions.
Actual pension will depend on pensionable salary, pensionable service and other applicable conditions.
The FAQ states that the Government's EPS contribution remains limited to 1.16% of wages up to ₹15,000.
The revision does not by itself increase the Government contribution beyond ₹174 per month per member.
Although mathematical calculations based on the higher wage can reach ₹10.50 lakh, the maximum assurance benefit remains ₹7 lakh under the present EDLI framework stated in the FAQ.