Key points
- The statutory wage ceiling for EPF, EPS and EDLI is ₹25,000 a month from 17 September 2026. It had been ₹15,000 since September 2014. It was notified on 17 September 2026 (S.O. 5109(E)) under the Code on Social Security, 2020.
- Employees whose PF was restricted to ₹15,000 now contribute on ₹25,000 or their actual PF wages, whichever is lower.
- Employees who were left out only because their wages were above ₹15,000 must be enrolled if their PF wages are ₹25,000 or less.
- The maximum EPS (pension) contribution is now ₹2,083 a month (8.33% of ₹25,000), up from ₹1,250.
- September 2026 is a split month: ₹15,000 applies to 1–16 September and ₹25,000 to 17–30 September, in one ECR. The September ECR and payment are due by 31 October 2026.
What changed on 17 September 2026?
The Union Cabinet approved the higher ceiling on 16 September 2026, and it took effect the next day, 17 September 2026. The wage ceiling decides two things: up to what wage PF membership is mandatory, and the maximum wage on which the statutory contributions are worked out.
| Item | Up to 16 Sep 2026 | From 17 Sep 2026 |
|---|---|---|
| Wage ceiling (EPF, EPS, EDLI) | ₹15,000 a month | ₹25,000 a month |
| Mandatory coverage | PF wages up to ₹15,000 | PF wages up to ₹25,000 |
| Employee share on the ceiling (12%) | ₹1,800 | ₹3,000 |
| Maximum EPS contribution (8.33%) | ₹1,250 | ₹2,083 |
| Maximum EDLI contribution (0.5%) | ₹75 | ₹125 |
The contribution rates themselves did not change: 12% from the employee and 12% from the employer, with 8.33% of the employer's share going to the Employees' Pension Scheme (EPS) and the rest to the employee's EPF account.
Which employees are affected?
1. Members whose PF was restricted to ₹15,000
If you deducted PF on ₹15,000 for employees whose PF wages were higher, the base now moves up to their actual PF wages or ₹25,000, whichever is lower. Both the employee and employer contributions go up for these employees, and take-home pay falls a little because the employee's 12% is on a bigger base.
2. Employees who were never enrolled
Employees who joined at PF wages above ₹15,000 were not covered compulsorily. If their PF wages are ₹25,000 or less, they must now be enrolled in EPF, EPS and EDLI from 17 September 2026, provided they meet the other conditions. Enrolment is the employer's job: generate the UAN, seed Aadhaar and approve KYC so they can appear in the ECR.
3. EPF-only members
Some members are in EPF but not in EPS, because their wages at joining were above the ceiling then in force. EPFO says EPF-only members earning up to ₹25,000 are to be enrolled in EPS from 17 September 2026, so part of the employer share now goes to EPS for them.
4. Employees above ₹25,000
New joiners with PF wages above ₹25,000 are still outside compulsory coverage. Existing members above the ceiling stay members. Contributing on wages above the ceiling remains optional, so follow your PF policy consistently for each employee.
New monthly PF amounts (from October 2026)
These figures assume the employer and employee contribute on wages up to the ₹25,000 ceiling, the member is in EPS, and amounts are rounded to the rupee.
| PF wages | Employee 12% | EPS 8.33% | Employer EPF share | EDLI 0.5% | Employer cost (excl. admin) |
|---|---|---|---|---|---|
| ₹15,000 | ₹1,800 | ₹1,250 | ₹550 | ₹75 | ₹1,875 |
| ₹20,000 | ₹2,400 | ₹1,666 | ₹734 | ₹100 | ₹2,500 |
| ₹25,000 | ₹3,000 | ₹2,083 | ₹917 | ₹125 | ₹3,125 |
| ₹30,000 (restricted to ceiling) | ₹3,000 | ₹2,083 | ₹917 | ₹125 | ₹3,125 |
Under the old ₹15,000 ceiling, every restricted row above ₹15,000 stopped at ₹1,800 (employee), ₹1,250 (EPS), ₹550 (employer EPF) and ₹75 (EDLI). Administrative charges of 0.5% of EPF wages are paid on top at challan level, subject to a monthly minimum per establishment.
If you already contribute on actual wages above ₹15,000, the 12% + 12% does not change. What changes is the split: more of the employer's share goes to EPS (up to ₹2,083 instead of ₹1,250) and EDLI rises to 0.5% of wages up to ₹25,000.
How to calculate PF for September 2026
Because the ceiling changed on 17 September, EPFO treats September 2026 as two parts. Wages are pro-rated on a 30-day basis: 16/30 of the month (1–16 September) is capped at the old ceiling, so at most ₹8,000, and 14/30 (17–30 September) is capped at the new ceiling, so at most about ₹11,667. You still upload one ECR for September.
Worked example: PF wages of ₹20,000, member restricted to the ceiling
| Part of September | Pro-rated wages | Cap for the part | PF wages used |
|---|---|---|---|
| 1–16 September (16/30) | ₹10,666.67 | ₹8,000 (16/30 of ₹15,000) | ₹8,000 |
| 17–30 September (14/30) | ₹9,333.33 | ₹11,666.67 (14/30 of ₹25,000) | ₹9,333.33 |
| September total | ₹17,333.33 |
The employee share is 12% of ₹17,333.33 = ₹2,080. EPS is 8.33% of the same base, about ₹1,444, and the employer EPF share is the balance of the employer's 12%, about ₹636. The portal's rounding can differ by a rupee.
For an employee who was not a member before and is enrolled from 17 September, only the second part counts: ₹9,333.33 of PF wages, so an employee share of ₹1,120.
PF calculator: ₹25,000 ceiling
| PF wages for the month | — |
| Employee share (12%) | — |
| Employer: EPS (8.33%, capped) | — |
| Employer: EPF share | — |
| Employer: EDLI (0.5%, capped) | — |
| Total employer cost (excl. admin charges) | — |
An estimate for checking payroll, rounded to the rupee. "Newly covered" only changes September: such employees count from 17 September. Members above 58 are not in EPS, so untick the EPS box for them.
Switching to ₹25,000 in AiroHR
In AiroHR, open Taxes & Compliance, choose ₹25,000 (revised, effective 17 Sep 2026) on the PF wage ceiling card, pick the effective date and save. Payroll periods ending on or after that date use the new ceiling, and EPS and EDLI follow it. For a pay month that crosses the date, AiroHR caps the days before it at ₹15,000 and the days from it at ₹25,000, and the PF ECR file from Reports follows the same split. Payroll you have already locked is not changed.
PF & ESI software Request free trialEmployer checklist
- List the affected employees: members restricted to ₹15,000 whose PF wages are higher, employees never enrolled whose PF wages are ₹25,000 or less, and EPF-only members up to ₹25,000.
- Enrol the newly covered employees from 17 September 2026: UAN, Aadhaar seeding and KYC.
- Check PF wages against the Code's definition, not gross or CTC, including the 50% add-back.
- Update the ceiling in payroll and recompute September with the split.
- File one ECR for September 2026 and pay by 31 October 2026. From October, back to the 15th of the following month.
- Tell employees why their PF deduction went up: the extra amount goes into their own PF and pension accounts, with a matching employer share.
- Check your contractors: workers deployed with you through contractors should be covered on the same basis.
For the ECR format, EE/ER split and common upload errors, read our PF ECR filing guide. To see how PF shows on a payslip, see the salary slip format guide.
PF, ESI, PT and TDS in every payroll run
AiroHR calculates PF, ESI and PT once your rules are set up in CTC Setup, deducts the monthly TDS you set, links attendance to payable days, and gives you portal-ready PF ECR files and ESIC reports every month. Plans start from ₹49 per employee per month.
Payroll software See pricingOfficial sources
- Cabinet approves higher EPFO wage ceiling of ₹25,000 — Press Information Bureau, 16 September 2026
- EPFO wage ceiling enhanced from ₹15,000 to ₹25,000 per month — Press Information Bureau, 23 September 2026
- Employees' Provident Fund Organisation (circulars and FAQs on the revised ceiling)
- EPFO Unified Portal for employers (UAN, ECR upload and challan payment)
This article is general guidance, not legal or tax advice. EPFO may issue further instructions on the revised ceiling, so confirm current requirements on the official EPFO website or with your PF consultant before filing. Last reviewed: 17 October 2026.