Key takeaways
- The EPF wage ceiling is now ₹25,000 a month (was ₹15,000), effective 17 September 2026.
- Employees earning up to ₹25,000 must now be enrolled in EPF; the government expects more than 51 lakh additional employees to come under mandatory coverage.
- Maximum mandatory employee PF rises from ₹1,800 to ₹3,000 a month.
- September 2026 is a split month: two ceilings apply in the same wage month.
For twelve years, ₹15,000 was the number every payroll team knew by heart. With minimum wages in many states already above it, the Union Cabinet approved raising the ceiling, and the Labour Ministry notified the new limit under the Code on Social Security, 2020.
The change affects who must be covered, how much is contributed and how much employees take home. If you run payroll for staff earning between ₹15,000 and ₹25,000, your PF numbers already look different.
What exactly changed?
| Item | Up to 16 Sep 2026 | From 17 Sep 2026 |
|---|
| Wage ceiling for mandatory membership | ₹15,000 | ₹25,000 |
| Employee PF at the ceiling (12%) | ₹1,800 | ₹3,000 |
| Employer share to EPS at the ceiling (8.33%) | ₹1,250 | ₹2,083 |
| Schemes affected | EPF, EPS and EDLI |
Who is affected?
- New joiners earning up to ₹25,000 (basic + DA) must be enrolled in EPF from day one.
- Existing members whose PF was capped at ₹15,000 may see contributions rise up to the new ceiling. Check what counts as wages under the 50% wage rule too.
- Employees between ₹15,000 and ₹25,000 who were never enrolled now fall under mandatory coverage.
September 2026 is a split month
The old and new ceilings both apply to the September 2026 wage month, so PF has to be calculated in two parts.
1–16 Sep: ₹15,000 ceiling
17–30 Sep: ₹25,000 ceiling
Worked example: ₹22,000 basic + DA
Here is how monthly PF changes for an employee earning ₹22,000 basic + DA who was previously contributing on the ₹15,000 ceiling.
Before (₹15,000 ceiling)
PF wages₹15,000
Employee PF (12%)₹1,800
Employer to EPS (8.33%)₹1,250
Employer to EPF (3.67%)₹550
Total PF per month₹3,600
After (₹25,000 ceiling)
PF wages₹22,000
Employee PF (12%)₹2,640
Employer to EPS (8.33%)₹1,833
Employer to EPF (3.67%)₹807
Total PF per month₹5,280
Take-home falls by ₹840 a month and employer cost rises by ₹840, before EDLI and admin charges.
What employers should do now
1
Identify affected employeesList everyone with basic + DA between ₹15,000 and ₹25,000, and members whose PF is currently capped at ₹15,000.
2
Update payroll settingsChange the ceiling in your payroll system, and make sure the split September 2026 month is calculated correctly.
3
Enrol newly covered staffGenerate UANs for employees who were not members and include them in the next ECR.
4
Budget for higher employer costAt the ceiling, the employer's PF share rises by up to ₹1,200 a month per employee.
5
Tell employees before paydayExplain why take-home is lower and that the difference goes into their own PF and pension.
How GoHRMS handles it
Your next payroll, already updated
- EPF ceiling maintained centrally
- Split-month PF calculated automatically
- ECR-ready PF reports every month
- Employees see the change on their payslip
See Payroll Software
Frequently asked questions
Yes. From 17 September 2026, employees whose basic pay plus DA is up to ₹25,000 a month must be covered under EPF, EPS and EDLI.
Mandatory PF applies only up to ₹25,000 of basic pay plus DA. Contributing on a higher wage is voluntary and needs both employer and employee to opt in. Pension (EPS) contributions stay limited to the ceiling.
No. ESI has its own wage ceiling, which remains ₹21,000 of gross wages a month, with contributions of 0.75% by the employee and 3.25% by the employer.
September 2026 wages are split by days: the part for 1–16 September uses the ₹15,000 ceiling and the part for 17–30 September uses ₹25,000. Follow the EPFO's FAQs on the revised ceiling for how to report it in the ECR, or talk to our compliance team.
Tags:EPFWage ceilingCode on Social SecurityECRPayroll compliance
GC
Gizmosys Compliance Team
Our compliance team runs PF, ESI, professional tax, LWF, bonus and gratuity compliance every month for businesses across India, and writes these guides from that day-to-day experience. See our compliance services.
Sources:
EPFO FAQs on the revised wage ceiling (StudyCafe) ·
Notification S.O. 5109(E) summary (ELP) ·
Union Cabinet decision (Upstox).
This article is general information, not legal advice.