The change in one table
| Until 16 Sep 2026 | From 17 Sep 2026 | |
|---|---|---|
| Wage ceiling for compulsory PF | ₹15,000 a month | ₹25,000 a month |
| Max statutory PF (each side) | ₹1,800 | ₹3,000 |
| Max EPS pension share | ₹1,250 | ₹2,083 |
| Pensionable salary cap (EPS) | ₹15,000 | ₹25,000 |
If you earn between ₹15,001 and ₹25,000 basic
You are now covered compulsorily. If you were not in PF before, 12% of your basic will be deducted and your employer will add 12%. On ₹20,000 basic that is ₹2,400 from you and ₹2,400 from the employer: ₹1,666 to EPS and ₹734 to EPF, so ₹3,134 a month goes into your PF. Your take-home falls by ₹2,400, but you gain a pension, insurance cover under EDLI and a growing PF balance.
If you already were in PF
If your employer contributes on full basic nothing much changes, except that up to ₹2,083 (instead of ₹1,250) of the employer’s share now goes to EPS, so slightly less goes to your EPF lump sum and more to your pension. If your employer only paid the minimum on ₹15,000, the minimum is now on ₹25,000, so both shares rise to ₹3,000.
Why more EPS matters
Your EPS pension at 58 is roughly pensionable salary × pensionable service ÷ 70. With the cap at ₹25,000 instead of ₹15,000, future pensions can be higher, for service after the change.
What is still being worked out
The Cabinet decision (PIB, 16 September 2026) applies the higher ceiling to EPF, EPS and EDLI “in accordance with the applicable scheme provisions”. EPFO is issuing circulars on the transition, so payroll treatment for September 2026 can differ between employers. The calculator uses the ₹25,000 ceiling for the EPS split from now on.
Pre-filled example: age 28, ₹20,000 basic, ₹50,000 saved, 5% rises — the PF balance at 58 comes to about ₹94,87,049.
Common questions from payroll teams
Do salaries above ₹25,000 change? Only if the employer was paying on the statutory minimum; then the minimum rises from ₹1,800 to ₹3,000 on each side. What about employees already earning above ₹15,000 who were not members? Those earning up to ₹25,000 are now covered compulsorily from 17 September 2026. Is EDLI insurance affected? The PIB release says cover extends under the scheme provisions; EDLI benefits are linked to wages and balances, so they can rise too.
Because the change came in the middle of a month, some employers split September 2026 at the old and new ceilings while others start from October. Your passbook will show which approach your employer used. If something looks wrong, raise it with HR first and then through the EPFiGMS grievance portal.
Key EPF figures (checked 5 November 2026)
| Item | Figure |
|---|---|
| Interest rate FY 2025-26 | 8.25% (CBT 2 March 2026) |
| Employee contribution | 12% of basic + DA |
| Employer contribution | 12%: 8.33% EPS (max ₹2,083) + rest to EPF |
| Wage ceiling | ₹25,000 a month from 17 September 2026 (was ₹15,000) |
| Tax-free interest limit | Employee contributions up to ₹2.5 lakh a year (₹5 lakh without employer contribution) |
FAQ
When did the EPF wage ceiling change to ₹25,000?
On 17 September 2026, the day after the Union Cabinet approved it.
What is the maximum EPS contribution now?
₹2,083 a month (8.33% of ₹25,000), up from ₹1,250.
How much will EPF be at 58 on ₹20,000 basic?
About ₹94,87,049 starting at 28 with ₹50,000, 5% yearly rises and 8.25% interest.
Sources (checked 5 November 2026): PIB, “Cabinet Approves Higher EPFO Wage Ceiling of Rs. 25,000” (16 September 2026, effective 17 September 2026) and PIB release of 17 September 2026 (12% / 8.33% / 3.67% split); EPFO / Ministry of Labour — 8.25% interest for 2025-26 (CBT meeting 2 March 2026, ratified June 2026; reported by ThePrint and Tribune); Employees’ Provident Funds Scheme 1952 and Employees’ Pension Scheme 1995; Income-tax Act provisions on taxable PF interest above ₹2.5 lakh.