{"id":3551,"date":"2026-09-16T17:54:37","date_gmt":"2026-09-16T12:24:37","guid":{"rendered":"https:\/\/www.sgcms.com\/regulatory-updates\/?p=3551"},"modified":"2026-09-18T16:56:03","modified_gmt":"2026-09-18T11:26:03","slug":"epfo-wage-ceiling-increased-from-15000-to-25000","status":"publish","type":"post","link":"https:\/\/www.sgcms.com\/regulatory-updates\/epfo-wage-ceiling-increased-from-15000-to-25000\/","title":{"rendered":"EPFO: Wage ceiling increased from 15,000 to 25,000"},"content":{"rendered":"

The Ministry of Labour & Employment, by Notification S.O. 5109(E) dated 17 September 2026<\/strong>, issued under Section 2(89) of the Code on Social Security, 2020 (CoSS), has notified \u20b925,000 per month as the wage ceiling for the purposes of Chapter III of the Code (Employees\u2019 Provident Fund). The notification supersedes the earlier Notification S.O. 2702(E) dated 29 May 2026 and is effective from the date of its publication in the Official Gazette, i.e. 17 September 2026<\/strong>.<\/p>\n

02\u00a0 <\/strong>WHAT HAS CHANGED<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n
Parameter<\/strong><\/td>\nUp to 16 Sept 2026<\/strong><\/td>\nFrom 17 Sept 2026<\/strong><\/td>\n<\/tr>\n<\/thead>\n
Statutory wage ceiling (EPF)<\/strong><\/td>\n\u20b915,000 per month<\/td>\n\u20b925,000 per month<\/td>\n<\/tr>\n
Mandatory coverage<\/strong><\/td>\nWages up to \u20b915,000<\/td>\nWages up to \u20b925,000<\/td>\n<\/tr>\n
Max. employee share (12%)*<\/strong><\/td>\n\u20b91,800<\/td>\n\u20b93,000<\/td>\n<\/tr>\n
Max. employer share to EPS (8.33%)<\/strong><\/td>\n\u20b91,250<\/td>\n\u20b92,083<\/td>\n<\/tr>\n
Max. employer share to EPF (3.67%)*<\/strong><\/td>\n\u20b9550<\/td>\n\u20b9917<\/td>\n<\/tr>\n
EDLI (0.50%, capped at ceiling)<\/strong><\/td>\n\u20b975<\/td>\n\u20b9125<\/td>\n<\/tr>\n
Admin charges @ 0.50%<\/strong><\/td>\n\u20b975<\/td>\n\u20b9125<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

* Where contributions are restricted to the ceiling. Employers already contributing on actual (higher) wages continue to do so.<\/em><\/p>\n

03\u00a0 <\/strong>WHO IS IMPACTED \u2014 QUICK DECISION GUIDE<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n
Employee category<\/strong><\/td>\nImpact<\/strong><\/td>\nAction required<\/strong><\/td>\n<\/tr>\n<\/thead>\n
Wages \u20b915,001 \u2013 \u20b925,000, NOT a PF member earlier<\/strong><\/td>\nNewly covered (mandatory)<\/td>\nEnrol from 17.09.2026; generate UAN \/ link existing UAN; start EPF + EPS + EDLI<\/td>\n<\/tr>\n
Existing member, wages above \u20b915,000, contribution restricted to \u20b915,000<\/strong><\/td>\nHigher contribution base<\/td>\nRevise PF wage cap to \u20b925,000 from 17.09.2026 (pro-rata for September)<\/td>\n<\/tr>\n
Existing member, contribution already on actual Basic + DA<\/strong><\/td>\nNo change in total PF outgo<\/td>\nRe-split employer share: more to EPS, less to EPF; EDLI marginally higher<\/td>\n<\/tr>\n
Wages above \u20b925,000, NOT a PF member<\/strong><\/td>\nNo change<\/td>\nRemains an excluded employee (voluntary coverage option continues)<\/td>\n<\/tr>\n
Existing member, wages up to \u20b915,000<\/strong><\/td>\nNo change<\/td>\nContinue as is<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

04\u00a0 <\/strong>NEWLY COVERED EMPLOYEES \u2014 ENROLMENT<\/strong><\/p>\n

    \n
  1. Identify all employees whose wages are between \u20b915,001 and \u20b925,000<\/strong> and who were not members<\/strong> of EPF so far (including those with basic salary above \u20b915,000 who were treated as excluded employees).<\/li>\n
  2. Generate UAN<\/strong> for each such employee (UAN generation through Face Authentication Technology via UMANG, as currently required by EPFO). Where the employee already holds a UAN from a previous employment, link the existing UAN \u2014 do not generate a duplicate<\/strong>.<\/li>\n
  3. Bring them into coverage with date of joining in EPF as 17 September 2026<\/strong> (or actual date of joining, for employees who joined after that date).<\/li>\n
  4. Complete KYC (Aadhaar, bank account, PAN), obtain the declaration form and file e-nomination<\/strong>.<\/li>\n
  5. Evaluate and enrol eligible employees under the PMVBRY scheme<\/strong> so that the employer incentive can be claimed from the Department (see Section 07).<\/li>\n
  6. Include these employees in the September 2026 ECR<\/strong> with pro-rata wages from 17 September.<\/li>\n<\/ol>\n

    05\u00a0 <\/strong>EXISTING MEMBERS \u2014 REVISED CONTRIBUTION BASE<\/strong><\/p>\n

      \n
    1. Identify members whose wages exceed \u20b915,000<\/strong> and whose contribution is currently being remitted up to the ceiling of \u20b915,000<\/strong>. Their contribution will now be remitted on the revised wage ceiling of \u20b925,000 (or actual wages, if lower).<\/li>\n
    2. For September 2026, compute contribution on a split basis<\/strong>: 1\u201316 September on \u20b915,000 ceiling and 17\u201330 September on \u20b925,000 ceiling.<\/li>\n
    3. Employee share will increase (up to \u20b91,200 per month at full ceiling), reducing take-home pay. We recommend a short communication to affected employees explaining the higher retirement savings and pension benefit.<\/li>\n<\/ol>\n

      Illustration \u2014 September 2026 (30 days), employee with Basic + DA of \u20b930,000, contribution restricted to ceiling<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n
      Component<\/strong><\/td>\n1\u201316 Sept<\/strong><\/td>\n17\u201330 Sept<\/strong><\/td>\nSept total<\/strong><\/td>\nOct onwards<\/strong><\/td>\n<\/tr>\n<\/thead>\n
      PF wages (ceiling pro-rated)<\/td>\n\n

      \u20b98,000<\/p>\n<\/td>\n

      		\u20b911,667<\/td>\n\u20b919,667<\/td>\n\n

      \u20b925,000<\/p>\n<\/td>\n<\/tr>\n

      Employee share @ 12%<\/td>\n<\/td>\n<\/td>\n\n

      \u20b92,360<\/p>\n<\/td>\n

      		\n

      \u20b93,000<\/p>\n<\/td>\n<\/tr>\n

      Employer share \u2013 EPS @ 8.33%<\/td>\n<\/td>\n<\/td>\n\n

      \u20b91,638<\/p>\n<\/td>\n

      		\n

      \u20b92,083<\/p>\n<\/td>\n<\/tr>\n

      Employer share \u2013 EPF @ 3.67%<\/td>\n<\/td>\n<\/td>\n\n

      \u20b9722<\/p>\n<\/td>\n

      		\n

      \u20b9917<\/p>\n<\/td>\n<\/tr>\n

      EDLI @ 0.50%<\/td>\n<\/td>\n<\/td>\n\n

      \u20b998<\/p>\n<\/td>\n

      		\n

      \u20b9125<\/p>\n<\/td>\n<\/tr>\n

      Admin charges @ 0.50%<\/td>\n<\/td>\n<\/td>\n\n

      \u20b998<\/p>\n<\/td>\n

      		\n

      \u20b9125<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

      06\u00a0 <\/strong>EMPLOYEES\u2019 PENSION SCHEME (EPS) AND COST IMPACT<\/strong><\/p>\n