The Central Government has notified ₹25,000 per month as the wage ceiling for the purposes of Chapter III of the Code on Social Security, 2020, with effect from 17 September 2026, being the date of publication in the Official Gazette. This replaces the ₹15,000 ceiling, and is the first substantive revision of the provident fund wage threshold since 2014.
| Notification | S.O. 5109(E), Gazette of India, Extraordinary, Part II — Section 3 — Sub-section (ii), No. 4918 |
| Dated | 17 September 2026 |
| Power exercised | Clause (89) of Section 2, Code on Social Security, 2020 (36 of 2020) |
| Revised ceiling | ₹25,000 per month |
| Applies to | All of Chapter III of the Code — Provident Fund, Pension and Deposit-Linked Insurance |
| Effective from | 17-Sep-26 |
Key Changes
1. Employees not currently enrolled because their wages exceed ₹15,000
Employees whose provident fund wages fall in the ₹15,000 to ₹25,000 band and who were treated as excluded employees cease to be excluded from 17 September 2026. They become mandatorily coverable and must be enrolled.
2. Existing members whose contribution is currently restricted to ₹15,000
- Where actual provident fund wages are ₹25,000 or below, contributions must now be computed on the full actual wages.
- Where actual provident fund wages exceed ₹25,000, the employer may continue its existing practice of restricting contributions to the statutory ceiling — but that ceiling is now ₹25,000, not ₹15,000. Contribution therefore rises to the ₹25,000 base.
3. Existing members already contributing on full actual wages above ₹25,000
No change. The ceiling is a floor for statutory obligation, not a licence to reduce. Contributions already being made on higher actual wages must continue at that level.
4. International workers
No wage ceiling applies to international workers. Their position is unaffected.
Do not reduce any employee’s existing contribution to the new ceiling. Contributions currently computed on higher actual wages must be maintained. The statutory bar on reducing wages or benefits to offset an increased contribution obligation continues to apply.
Pension and insurance implications
Pension (EPS). Employees newly brought into coverage in the ₹15,000–25,000 band acquire pension scheme coverage subject to the usual eligibility conditions, including the rule that a person who first becomes a provident fund member above the pension wage ceiling is not enrolled in the pension scheme. Because the ceiling now stands at ₹25,000 for the whole of Chapter III, the employer’s pension contribution — computed at 8.33% and statutorily restricted to the ceiling — rises correspondingly.
Deposit-linked insurance (EDLI). The insurance contribution and the assurance benefit are both computed by reference to the wage ceiling. Cover for the affected band will therefore increase proportionately. (Revised assurance benefit details awaited).
Indicative cost impact per affected employee, per month
The figures below compare an employee at the old ceiling with the same employee at the new ceiling. Actual impact depends on each employee’s provident fund wage.
| Component | At ₹15,000 | At ₹25,000 | Increase |
| Employee contribution (12%) | ₹ 1,800 | ₹ 3,000 | ₹ 1,200 |
| Employer contribution (12%) | ₹ 1,800 | ₹ 3,000 | ₹ 1,200 |
| — of which to pension (8.33%) | ₹ 1,250 | ₹ 2,083 | ₹ 833 |
| — of which to provident fund (3.67%) | ₹ 550 | ₹ 917 | ₹ 367 |
| Deposit-linked insurance (0.50%, employer) | ₹ 75 | ₹ 125 | ₹ 50 |
| Administrative charges (0.50%, employer) | ₹ 75 | ₹ 125 | ₹ 50 |
| Total employer outgo | ₹ 1,950 | ₹ 3,250 | ₹ 1,300 |
Points still to be settled
- The wage month from which the revised ceiling applies. The notification takes effect mid-month, on 17 September 2026. Whether the revised ceiling is to be applied to the September 2026 wage month in full or on a pro-rated basis is an operational question.
- Revised maximum assurance benefit under the deposit-linked insurance scheme.
- Treatment of exempted establishments and private trusts, where trust rules and exemption conditions may need corresponding amendment.
- Return and challan field changes on the electronic filing portal to accept the higher ceiling.
We will continue to monitor the instructions issued by EPFO and the Ministry of Labour & Employment and provide further updates accordingly.