Now Reading: EPFO raises PF wage ceiling to Rs 25,000 from September 17
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EPFO raises PF wage ceiling to Rs 25,000 from September 17
The Employees' Provident Fund Organisation (EPFO) has increased the wage ceiling for mandatory EPF coverage from Rs 15,000 to Rs 25,000 per month, effective from September 17, 2026. The change will bring…
The Employees' Provident Fund Organisation (EPFO) has increased the wage ceiling for mandatory EPF coverage from Rs 15,000 to Rs 25,000 per month, effective from September 17, 2026. The change will bring more employees under the mandatory coverage, including those earning Rs 20,000 a month who were previously excluded because their wages exceeded the old Rs 15,000 threshold.
Because the new ceiling applied only from September 17, contributions for September are calculated using two different periods: the old Rs 15,000 limit for September 1, 16 and the revised Rs 25,000 limit for September 17, 30. EPFO has published a detailed calculation framework for September covering EPF, the Employees' Pension Scheme (EPS), and the Employees' Deposit Linked Insurance (EDLI), with different scenarios depending on whether a worker was already an EPF member or became newly eligible mid-month.
For example, a worker earning Rs 20,000 who became eligible only from September 17 would have a pro-rated EPF wage of Rs 9,333 for September, with employee and employer contributions totalling Rs 2,240 for the month. From October 2026 onwards, the full Rs 25,000 ceiling will apply for entire months, simplifying the calculations.
Indian Opinion Analysis
The EPFO wage ceiling has not been revised since 2014, when it was raised from Rs 6,500 to Rs 15,000. The new threshold of Rs 25,000 brings the coverage in line with inflation and wage growth over the past decade, and will primarily benefit workers in small and medium enterprises where salaries often fall between the old and new limits. September's split calculation is a one-off transitional measure caused by the mid-month implementation date, from October 2026, the full Rs 25,000 ceiling (subject to actual wages) will apply for the entire month. The key number to watch is the number of new subscribers enrolled in the October ECR filings, as this will show how many employees were actually brought under mandatory coverage in the months ahead.
Source: timesnownews.com
This brief was synthesised by AI from the source linked above.
