EPFO wage ceiling raised to Rs 25,000, take-home pay may fall

The labour ministry has raised the EPFO wage ceiling from Rs 15,000 to Rs 25,000 per month, effective September 17. The change brings over one crore additional workers under mandatory social security coverage. Employees earning between Rs 15,001 and Rs 25,000 will now be covered under the Employees' Pension Scheme, with mandatory monthly PF contributions rising to Rs 3,917, according to EPFO FAQs cited by multiple outlets.

The ministry has directed employers not to reduce employees' statutory wages to offset the increased costs. It said the employer's statutory contribution cannot be treated as an employee deduction by describing it as part of cost-to-company. To help with the added financial burden, the government offers an incentive of up to Rs 3,000 per month for every new hire under the Pradhan Mantri Viksit Bharat Rojgar Yojana. For September, contributions are calculated on a pro-rata basis from September 17, EPFO clarified on September 29.

Update, 30 September 2026: EPFO on September 29 published a pro-rata calculation framework for September contributions, reported by Times Now and Business Today. The revised ceiling applies from September 17, so contributions for September 1 to 16 remain under the old Rs 15,000 limit. Three scenarios are detailed for new EPF members, existing members newly eligible for EPS, and existing EPF-plus-EPS members.