Salary and retirement

EPF wage ceiling raised to ₹25,000: what changes on your payslip

The PF wage ceiling went from ₹15,000 to ₹25,000 on 17 September 2026. What it means for take-home pay, your EPF balance and your EPS pension.

By Saifu team · 5 October 2026 · 3 min read · Reviewed by Chandan Kumar Dash

Try it: EPF calculatorWork out your EPF corpus at 58 at 8.25% interest, with the ₹25,000 wage ceiling, salary hikes, VPF and an EPS pension estimate.

The Union Cabinet approved raising the EPF wage ceiling from ₹15,000 to ₹25,000 a month on 16 September 2026, and the Ministry of Labour and Employment notified it the next day. It is the first change since September 2014. The ceiling is the pay on which PF contributions are compulsory, so this one number changes payslips, EPF balances and pensions for millions of people.

Who it affects

People earning up to ₹25,000 who were not covered before. The government says about 51 lakh more workers come under compulsory EPF, EPS pension and EDLI insurance.
People whose basic pay plus DA is above ₹15,000 and whose PF was worked out on ₹15,000. Their compulsory contribution goes up.
People whose PF was already worked out on full basic pay. Little changes, except the pension split described below.

What happens to take-home pay

You contribute 12% of your PF wages. On a basic pay of ₹25,000 or more, with PF worked out on the ceiling, your share goes from ₹1,800 to ₹3,000 a month. That is ₹1,200 less in your bank account each month, but it is not lost: it goes into your EPF account and earns 8.25% a year. Try your own numbers in the salary calculator.

Where your employer's share goes

Your employer also pays 12%. Of that, 8.33% of your pay up to the ceiling goes to the Employees' Pension Scheme, and the rest to your EPF account.

Before: up to ₹1,250 a month to EPS.
Now: up to ₹2,083 a month to EPS, and ₹917 to EPF on a ₹25,000 wage.

So more of the employer's share now builds your pension and less builds your EPF balance.

The government's part stays on ₹15,000. On 15 October 2026 the Ministry of Labour and Employment amended EPS 2026 by G.S.R. 890(E), with effect from 17 September 2026. The Central Government also pays 1.16% of your pay into the pension fund, and this part is worked out only on wages up to ₹15,000 a month, so it is at most ₹174 a month. The notification does not change the employer's 8.33% share, which still goes up to the ₹25,000 ceiling. Some reports describe this as the EPS ceiling being fixed at ₹15,000, but the change is only about the government's part.

What happens to the pension

EPS pension is pensionable wages times years of service, divided by 70, with at least 10 years of service. The new ceiling does not apply backwards: under EPS 2026 each period of service counts at the ceiling in force then, so years before 17 September 2026 count at up to ₹15,000 and later years at up to ₹25,000. For example, 10 years before and 25 years after the change would give (₹15,000 × 10 + ₹25,000 × 25) ÷ 70, about ₹11,070 a month, against ₹7,500 on the old ceiling alone. The minimum pension stays ₹1,000 a month.

September 2026 payslips

For the September 2026 wage month, EPFO has asked employers to use the old ceiling for 1 to 16 September and the new one from 17 September. You may see an odd amount on that one payslip.

Because employers had to redo September payrolls, EPFO has given them until 31 October 2026, instead of 15 October, to file the return and pay PF for the September 2026 wage month. This is under an EPFO circular dated 13 October 2026, as reported by The Tribune. It applies only to September; PF for October 2026 is still due by 15 November. So your September PF may show up in your passbook a little later than usual.

What to do

Check your October payslip: your PF line should reflect the new ceiling if your basic pay is above ₹15,000.
Check your EPFO passbook after a month or two to see the new amounts credited. September's PF can come as late as the end of October.
If you earn above ₹25,000 and want to save more, you can still choose to contribute on full basic, or add voluntary PF. Your employer does not have to match it.

Sources: EPS 2026, Gazette G.S.R. 527(E), Ministry of Labour and Employment note on the wage ceiling, SCC Online on the Cabinet decision, Business Today on EPS 2026 and the minimum pension, The Tribune: September 2026 PF deadline extended to 31 October, SGCMS: EPFO circular dated 13 October 2026, Gazette of India: G.S.R. 890(E) of 15 October 2026 amending EPS 2026, SCC Online: EPS 2026 amendment of 15 October 2026.

Rules, rates and limits change. Check the official source linked above before you rely on a figure here. Last checked 17 October 2026. Posts never contain referral or affiliate links from the writer.

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