EPFO wage ceiling raised to Rs 25,000 from September 2026

The Union Cabinet has increased the EPFO wage ceiling from Rs 15,000 to Rs 25,000, effective September 17, 2026, bringing over 51 lakh additional workers under mandatory EPF, pension and insurance coverage, NDTV Profit reports.

For employees earning up to Rs 25,000 as basic pay who were EPF members but not part of the EPS, the employer's contribution will now be split: 8.33% goes to EPS and 3.67% to EPF, the Economic Times explains. Earlier, such employees' full employer contribution went to EPF. The employee's own EPF contribution remains unchanged at 12% of basic pay.

For September 2026, contributions will be calculated in two periods covering before and after the effective date. The change affects take-home salary for some employees as employer contributions are reallocated.

Update, 30 September 2026: Livemint details EPFO’s September calculation framework, illustrating three scenarios for an employee earning Rs 20,000, with contributions split as 8.33% to EPS and 3.67% to EPF for the period from 17 September, and EDLI at 0.5%. Aaj Tak adds that for a Rs 25,000 wage, the monthly employee contribution is Rs 3,000, and for Rs 35,000, the capped PF wage keeps the contribution at Rs 3,000, not Rs 4,200, with the employer’s share going to EPF if the employee is not EPS-eligible.

Update, 1 October 2026: Livemint explains that under the new wage ceiling, the maximum EDLI insurance benefit rises from Rs 7 lakh to Rs 10.5 lakh, calculated as (Rs 25,000 × 35) plus Rs 1.75 lakh, with eligibility requiring active EPF membership at the time of death.