EPS 2026 Amended: Excluded EPF Members Earning up to the New Wage Ceiling Brought into Pension Coverage
September 30, 2026
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Notification: G.S.R. 847(E), dated 25 September 2026 (F. No. R-15025/03/2026-SS-II)
Issued by: Ministry of Labour and Employment, Government of India
Amends: Employees’ Pension Scheme, 2026 (principal scheme notified vide G.S.R. 527(E) dated 29 June 2026)
Effective from: 17 September 2026
The Central Government recently raised the EPF wage ceiling from ₹15,000 to ₹25,000 per month (S.O. 5109(E), effective 17 September 2026). Under the old ceiling, many employees were members of the Employees’ Provident Funds Scheme but were kept out of the Employees’ Pension Scheme, typically because their wages were above ₹15,000 when they joined. Many of these employees now earn at or below the new ceiling. This notification decides what happens to them.
A new clause (iii) is added to Paragraph 7(1) of the EPS 2026. It covers an employee who meets all of these conditions:
| Condition | Requirement |
|---|---|
| EPF membership | Has been a member of the Employees’ Provident Funds Scheme, 2026 |
| EPS membership | Is not currently a member of the Employees’ Pension Scheme |
| Wage test | Wages on the date the new wage ceiling was notified are less than or equal to the notified ceiling |
The effect is that these employees now fall within EPS membership under Paragraph 7(1).
Effective Date
The notification is dated 25 September 2026 but takes effect from 17 September 2026, the same date as the wage ceiling increase. This means it applies retrospectively by eight days, so that pension coverage and the higher ceiling start together.
Practical Scenarios
| Employee profile | Wages on 17 Sep 2026 | Covered by new clause (iii)? |
|---|---|---|
| EPF member, excluded from EPS (joined at ₹18,000 in 2019) | ₹22,000 | Yes, now eligible for EPS |
| EPF member, excluded from EPS | ₹25,000 | Yes, since the test is “less than or equal to” |
| EPF member, excluded from EPS | ₹28,000 | No, wages are above the ceiling |
| Already an EPS member | Any | Not affected, since the clause only covers non-members |
| Never an EPF member | Any | Not covered by this clause |
What Employers Should Do
- Identify affected employees. Look for EPF members who are flagged as non-EPS in payroll and whose wages on 17 September 2026 were at or below ₹25,000.
- Reconfigure contribution splits. From 17 September 2026, the employer’s share for these employees should be split between EPF and EPS. The treatment for September must be worked out on a split-month basis.
- Update EPFO records. Change the EPS eligibility status of affected members on the Unified Portal so that ECR filings match.
- Document the snapshot. Keep a record of each employee’s wages as of 17 September 2026, because eligibility depends on that date.
Please find attached the official notification.
