PF Wage Ceiling Raised to ₹25,000 from 17 September 2026: Latest PF Changes Under EPF Scheme 2026

The Ministry of Labour and Employment has raised the PF wage ceiling for mandatory coverage under the Employees' Provident Fund Organisation (EPFO) from ₹15,000 to ₹25,000 per month. The Union Cabinet approved the change on 16 September 2026, and the gazette notification under the Code on Social Security, 2020 was published on 17 September 2026, the date from which the new ceiling applies. This is the first revision since September 2014. It comes less than three months after the government notified the Employees' Provident Funds Scheme, 2026 and the Employees' Pension Scheme, 2026, which replaced the EPF Scheme, 1952 and EPS, 1995. Together, these are the biggest changes to provident fund rules in decades, and they affect every employer's payroll from the September 2026 wage month.

PF wage ceiling: what has changed

The contribution rate stays at 12% for both the employee and the employer. What changes is the wage on which the mandatory contribution is calculated. For an employee whose PF wages are ₹25,000 or more, the mandatory employee contribution rises by ₹1,200 a month, and the employer's matching contribution rises by the same amount, with ₹832.50 of it going to the pension fund (EPS). Contributions on wages above ₹25,000 remain voluntary.

Who is covered by the new ₹25,000 PF wage ceiling

• Employees whose monthly PF wages are up to ₹25,000 now fall under mandatory EPF, EPS and EDLI coverage. The government estimates that more than 51 lakh additional employees will be covered.
• Existing members earning between ₹15,000 and ₹25,000 will see a higher PF deduction and a higher employer contribution, which also means a bigger pension (EPS) contribution.
• Employees earning above ₹25,000 have their mandatory contribution capped at ₹3,000 (12% of ₹25,000); anything above this is voluntary.
• The central government's own contribution to EPS will rise to about ₹11,339 crore a year, compared with about ₹10,250 crore earlier.

How September 2026 PF contributions are calculated

Because the new ceiling applies from 17 September 2026, September is a split month. The ₹15,000 ceiling applies to wages for 1 to 16 September, and the ₹25,000 ceiling applies to wages for 17 to 30 September. Employers file one consolidated ECR for September and must remit the full statutory contribution by the usual due date of 15 October 2026. From the October 2026 wage month, the full ₹25,000 ceiling applies. For example, an employee with PF wages of ₹20,000 would contribute ₹2,400 a month from October 2026, compared with ₹1,800 earlier.

Key changes under the EPF Scheme 2026 and EPS 2026

The Employees' Provident Funds Scheme, 2026 was notified on 29 June 2026 (G.S.R. 525(E)) under the Code on Social Security, 2020, along with EPS 2026 and the EDLI Scheme 2026. Existing members continue automatically, with no fresh enrolment. The main changes are:

• Three withdrawal categories: Partial withdrawals are grouped into essential needs (illness, education, marriage), housing, and special circumstances.
• 25% minimum balance: 25% of total contributions must always stay in the account. Up to 75% (the eligible balance) can be withdrawn, after 12 months of membership.
• Withdrawal limits: Illness has no limit on the number of withdrawals, education up to 10 times, marriage up to 5 times, housing up to 5 times, and special circumstances up to 2 times a financial year. These counters restart from 29 June 2026.
• Full withdrawal on unemployment: A member can withdraw the full PF balance only after 12 months without a job, compared with 2 months under the old scheme.
• Faster claims: Claims must be settled within 20 days. Unjustified delays attract 12% penal interest.
• Voluntary contributions: Contributions above the wage ceiling are voluntary, the employer does not have to match them, and either side can reduce or stop them at any time.
• New wage base: The 12% applies to "wages" as defined in the Code on Social Security, including the rule that allowances above 50% of pay are added back to wages, instead of "basic wages" under the old Act.
• EPS 2026: The higher pension option now has statutory backing, the pension withdrawal benefit waiting period is up to 36 months, and pension claims must be processed within 20 days.
• Online nomination and Form V: Physical nomination forms are no longer needed, and employers must file the new consolidated return in Form V.

What employers and payroll teams should do now

1. 1

   Update the PF wage ceiling in payroll

   Change the ceiling from ₹15,000 to ₹25,000 for wages from 17 September 2026, and recompute EPF, EPS, EDLI and admin charges for every affected employee.

2. 2

   Calculate September 2026 on a split basis

   Apply the ₹15,000 ceiling for 1 to 16 September and ₹25,000 for 17 to 30 September, file one consolidated ECR, and remit by 15 October 2026.

3. 3

   Enrol newly covered employees

   Employees with PF wages between ₹15,000 and ₹25,000 who were not members must now be enrolled under EPF, EPS and EDLI. Generate or link their UAN and complete KYC.

4. 4

   Review CTC structures and offer letters

   The employee's share and the employer's share are separate. Check the higher employer cost against CTC and communicate the change in take-home pay to employees before the October payslip.

5. 5

   Separate statutory and voluntary PF

   Under the EPF Scheme 2026, contributions above the ceiling are voluntary. Record written elections and tag voluntary contributions separately in payroll and in Form V.

6. 6

   Deposit on time to protect the tax deduction

   An employee's PF contribution that the employer deposits after the EPF due date is disallowed under Section 36(1)(va) of the Income-tax Act. Tax auditors report these payments in Clause 20(b) of Form 3CD, so keep deposits within the due date.

Timeline of PF changes in 2026