# EPFO sets new EPS eligibility rules for employees earning above Rs 25,000

2026-10-01T06:57:21+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

The Employees’ Provident Fund Organisation (EPFO) has issued guidelines for employers to check EPS membership eligibility for new employees after raising the wage ceiling from Rs 15,000 to Rs 25,000 per month. Employees earning up to Rs 25,000 in basic pay and dearness allowance must mandatorily join EPF, EPS and EDLI. For those earning over Rs 25,000, EPS membership depends on past membership: if the employee was an EPS member earlier, they must continue in EPS. If not, no EPS contribution is required, and they can stay in EPF alone. Employers must verify the employee’s Universal Account Number (UAN) to check previous EPS status.

## Indian Opinion Analysis

The new wage ceiling brings workers earning between Rs 15,001 and Rs 25,000 into mandatory EPFO coverage, but leaves a key gap: employees above Rs 25,000 who never joined EPS remain outside the pension scheme, with no option to opt in. The EPFO’s reliance on past membership rather than current salary to decide eligibility means higher earners who switched jobs from outside the formal sector may stay uncovered. Employers now bear the burden of checking each new hire’s UAN history, and any wrong or missed deduction must be rectified through the EPFO. The real consequence of an incorrect contribution will surface only when a pension claim is filed.

## Coverage

- economictimes.indiatimes.com <https://economictimes.indiatimes.com/wealth/save/eps-pension-basic-pay-above-rs-25000-why-you-may-not-qualify-for-eps-membership/articleshow/134594073.cms>
  Straight explanation of EPFO rules without framing for or against the government

This brief was synthesised by AI from the source linked above.

Tags: Code on Social Security 2020, EPF, EPFO, EPS
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