Key takeaways
- The EPF wage ceiling is now ₹25,000 a month, effective 17 September 2026 (S.O. 5109(E)).
- Employees earning up to ₹25,000 are now mandatorily covered.
- At the ceiling, employee and employer contributions rise from ₹1,800 to ₹3,000 each.
What changed?
By notification S.O. 5109(E) dated 17 September 2026, the Ministry of Labour and Employment revised the wage ceiling for EPF, covered by Chapter III of the Code on Social Security, 2020, from ₹15,000 to ₹25,000 a month. It is the first revision since September 2014 and takes effect from 17 September 2026.
Who is affected?
Employees earning up to ₹25,000 a month are now within mandatory coverage. Many workers whose wages had risen above ₹15,000, often simply because of minimum wage revisions, were previously outside mandatory coverage and now fall within it.
How do contributions change?
At the ceiling, the employee contribution (12%) rises from ₹1,800 to ₹3,000 a month, and the employer contribution (12%) from ₹1,800 to ₹3,000. The pension (EPS) share of the employer contribution at the ceiling rises from ₹1,249.50 to ₹2,082.50. EDLI and administrative charges are payable on top.
What should employers do?
- Identify employees newly covered and enrol them with UANs.
- Update payroll configuration and test the next ECR before filing.
- Model the cost impact alongside the Labour Codes' definition of wages.
- Review salary structures and communicate take-home changes to employees.
- Revisit contractor rates, since vendors' PF costs will rise too.
- Apply the correct treatment for the September 2026 wage month, which straddles the effective date.
Frequently asked questions
What is the new EPF wage ceiling?
₹25,000 a month, effective 17 September 2026.
Has the ESI wage ceiling changed too?
No. The ESI ceiling remains ₹21,000 a month (₹25,000 for persons with disability).
Are there arrears for earlier months?
The revision applies prospectively from 17 September 2026; contributions already made under the old ceiling are protected.
This article is for general information and is not legal advice. Rules change through notifications, confirm the current position for your establishment.
