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Government Schemes

EPFO raises statutory wage ceiling to ₹25,000 per month

EPFO has increased the statutory wage ceiling to ₹25,000 per month, expanding mandatory coverage to over 51 lakh additional employees.

RM

Written by Rohan Mehta

Published 3 October 2026·2 min read

On this page3 sections
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The Employees’ Provident Fund Organisation (EPFO) has raised the statutory wage ceiling for mandatory provident fund coverage from ₹15,000 per month to ₹25,000 per month. Notification S.O. 5109(E) brought this revision into effect on 17 September 2026. The change extends mandatory social security coverage under EPF, EPS, and EDLI to over 51 lakh additional employees across India.

Monthly PF Wages Employee Share (12%) Employer EPS (8.33%) Employer EPF (3.67%) EDLI (0.5%)
₹10,000 ₹1,200 ₹833 ₹367 ₹50
₹15,000 ₹1,800 ₹1,250 ₹550 ₹75
₹20,000 ₹2,400 ₹1,666 ₹734 ₹100
₹25,000 ₹3,000 ₹2,083 ₹917 ₹125
₹35,000 ₹3,000 ₹0 ₹3,000 ₹125

Expansion of mandatory social security coverage

The statutory wage ceiling determines mandatory coverage under the Code on Social Security, 2020. The previous ceiling of ₹15,000 per month was set in September 2014 and remained unchanged despite rising earnings. Employees drawing monthly wages between ₹15,000 and ₹25,000 must now mandatorily join the EPF, EPS, and EDLI schemes. Existing members earning above ₹15,000 will also receive higher contributions and enhanced benefits. Minimum wage earners in at least eight major States and Union Territories previously exceeded the ₹15,000 limit and fell outside coverage. This revision aligns statutory thresholds with current wage levels across government financial schemes.

Filing returns and payroll adjustments for employers

Employers must handle contributions for September 2026 through a single Electronic Challan-cum-Return (ECR) due by 15 October 2026. The system calculates contributions separately for two distinct periods: up to 16 September 2026 under the ₹15,000 ceiling, and from 17 September 2026 under the ₹25,000 ceiling. When salary deductions cannot be completed immediately for newly eligible workers, employers may defer employee share deductions to the next payroll cycle. This deferment helps maintain accurate take home salary calculations without requiring prior approval from an Inspector-cum-Facilitator. However, full statutory remittances for September must still reach EPFO by 15 October 2026. Minimum monthly administrative charges remain at ₹500 for active establishments and ₹75 for those without active contributory members.

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