PF wage ceiling of ₹25,000, explained

The Ministry of Labour and Employment has raised the EPF wage ceiling from ₹15,000 to ₹25,000 a month, by notification S.O. 5109(E), with effect from 17 September 2026. It is the first rise since September 2014.

The ceiling now sits under Chapter III of the Code on Social Security, 2020 (the EPF chapter). It decides two things: who must be in PF, and the most wage PF is worked out on.

Who it affects

1. People already in PF whose contributions were capped at ₹15,000. If someone’s PF wage is above ₹15,000 and your company contributed only on ₹15,000, contributions now go up to their PF wage, capped at ₹25,000. Both shares rise.

2. People who were outside PF because they earned more than ₹15,000. These “excluded employees” must now be enrolled if their PF wage is ₹25,000 or less. EPFO’s FAQ says anyone in service on 17 September 2026 joins EPF, EPS and EDLI from that day. Enrolment is the employer’s job; the employee doesn’t have to apply. Collect UANs before you file.

3. People who contribute on more than ₹25,000 under a joint option with the employer can carry on. EPFO’s FAQ says they don’t have to cut back to ₹25,000.

4. People above the ceiling. Someone whose PF wage is above ₹25,000 and who isn’t already a member still doesn’t have to join. They can join voluntarily with the employer’s agreement.

Which wage is tested

The ceiling is tested on PF wages, not on gross pay or CTC. EPFO’s FAQ says PF wages here mean wages as defined in section 2(88) of the Social Security Code, the Labour Codes’ wage definition, including the 50% rule. So someone with a gross of ₹50,000 but wages of ₹25,000 under the Code is covered. Read our Labour Codes guide for how that wage is worked out.

The effect on EPS and the employer share

Rates don’t change. The employee pays 12% of PF wages. The employer also pays 12%, split into:

• 8.33% to the pension scheme (EPS), on wages up to the ceiling;
• the rest (3.67% at the ceiling) to EPF.

On top, the employer pays 0.5% for EDLI and 0.5% in admin charges (minimum ₹500 a month for an establishment with contributing members).

What changes is the cap:

PF wage	Employee (12%)	Employer to EPS (8.33%)	Employer to EPF	EDLI (0.5%)	Admin (0.5%)
₹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

Figures from EPFO’s FAQ, from October 2026.

The largest EPS contribution rises from ₹1,250 to ₹2,083 a month, so pensionable salary for EPS can now be up to ₹25,000. The government’s own 1.16% EPS contribution does not change: EPFO says it stays on wages up to ₹15,000, at most ₹174 a month.

EPF-only members whose PF wage falls between ₹15,000 and ₹25,000 also join EPS from 17 September 2026, according to EPFO’s FAQ.

September 2026: one month, two ceilings

Because the change came mid-month, EPFO’s FAQ splits September by calendar days:

• 1 to 16 September at the ₹15,000 ceiling (16/30 of the month);
• 17 to 30 September at the ₹25,000 ceiling (14/30 of the month).

You file one ECR for September, not two.

Due date: the FAQ gave 15 October 2026. EPFO then extended the September 2026 ECR and payment to 31 October 2026 (circular reported on 13 October 2026). The extension covers September 2026 only.

The employee’s extra share: if September’s pay had already gone out at the old ceiling, EPFO’s FAQ allows the extra employee share to be recovered in the next payroll without separate approval. The full employer and employee amounts must still be paid by the due date.

A worked example

Priya is already in PF. Her PF wage is ₹20,000 a month and, until now, her company capped contributions at ₹15,000.

Before (August 2026):

	Amount
Employee share (12% of ₹15,000)	₹1,800
Employer to EPS	₹1,250
Employer to EPF	₹550
EDLI and admin	₹150

September 2026 (split month):

• 1 to 16 September: ₹15,000 × 16/30 = ₹8,000
• 17 to 30 September: ₹20,000 × 14/30 = ₹9,333.33
• PF wages for September: ₹17,333.33

	Amount
Employee share (12%)	₹2,080
Employer to EPS (8.33%)	₹1,443.87
Employer to EPF (balance)	₹636.13
EDLI (0.5%)	₹86.67
Admin (0.5%)	₹86.67
Total	₹4,333.34

These match EPFO’s own example. Your ECR shows whole rupees, so expect small rounding differences.

From October 2026:

	Amount
Employee share (12% of ₹20,000)	₹2,400
Employer to EPS	₹1,666
Employer to EPF	₹734
EDLI and admin	₹200

The result: Priya’s take-home falls by ₹600 a month, and her PF savings rise by ₹1,200 a month (her ₹600 plus the employer’s ₹600). The company’s monthly cost for her rises by ₹650, including EDLI and admin.

If Priya had been an excluded employee instead, enrolled from 17 September, her September PF wage would be ₹9,333.33 and the employee share ₹1,120.

What to check

1. The ceiling in your payroll is ₹25,000 from 17 September 2026, not from 1 October.
2. September is split 16/30 and 14/30, in one ECR.
3. Excluded employees with PF wages up to ₹25,000 are enrolled from 17 September, with UANs.
4. Already-approved months at the old ceiling are topped up, and the employee share recovered in the next payroll.
5. PF wages follow the Code’s definition (with the 50% rule), not just basic pay.
6. The September ECR and payment go in by 31 October 2026.
7. Your budget reflects the higher employer cost for everyone with PF wages above ₹15,000.

Unsettled: EPFO’s FAQ treats enrolment of the newly covered group as compulsory from 17 September. A few commentators had read it as optional; we follow the FAQ. Which wage base applied to PF between 21 November 2025 and the new EPF Scheme 2026 is also still argued, but it doesn’t affect months from September 2026.

How Dexta handles this

• The new ceiling, by date. Dexta Pay applies ₹25,000 from 17 September 2026 and splits September by days, as EPFO’s FAQ does.
• Months already approved. Pay works out PF short-paid in approved months since the ceiling rose and lets payroll confirm it.
• ECR files. Pay works out employee and employer PF, EPS, EDLI and admin charges and makes the EPFO ECR 2.0 file, with a separate ECR for PF on arrears.
• PF on the full wage and voluntary PF. If your company contributes above the ceiling, or employees add voluntary PF, Pay handles both.
• Due dates. The statutory deposits tracker shows what each month owes for PF, ESI, PT, LWF, TDS and NPS, and the challans paid.

This is general guidance, not legal advice.