The Ministry of Labour and Employment has amended Paragraph 7(1) of the Employees’ Pension Scheme, 2026 vide G.S.R. 847(E) dated 25 September 2026, with the amendment coming into force with effect from 17 September 2026.
The amendment inserts a new clause [Paragraph 7(1)(iii)] covering employees who have been members of the Employees’ Provident Funds Scheme, 2026 but were not members of the Employees’ Pension Scheme, provided their wages on the date of notification of the new wage ceiling were less than or equal to the wage ceiling notified by the Central Government.
This amendment is relevant in the context of the separate notification dated 17 September 2026, whereby the statutory wage ceiling for Chapter III of the Code on Social Security, 2020 was enhanced from ₹15,000 to ₹25,000 per month, with effect from the same date.
Key Points
The amendment is particularly relevant for employees who:
- were already members of EPF;
- were not previously members of EPS; and
- had wages of ₹25,000 or below as on 17 September 2026, subject to the other applicable provisions of the EPS, 2026.
Accordingly, employers should review the EPF/EPS membership status and wages as on 17 September 2026 of existing EPF members who were not previously members of EPS, before determining the applicability of EPS membership under the amended provision.
In summary, the amendment does not mean that every existing EPF member automatically becomes an EPS member. The employee’s EPS history and wages as on 17 September 2026 should be examined to determine applicability.