The Union Cabinet approved, on 16 September 2026, raising the statutory wage ceiling for mandatory EPF coverage from ₹15,000/month to ₹25,000/month — the first revision since 2014. The Union Labour Minister has publicly stated the government’s intent to implement this from 17 September 2026.
Important — this is not yet legally in force
As of this note, the Gazette notification amending the EPF Scheme, 1952 (and, separately, the EPS Scheme, 1995, if applicable) has not been published. The revision becomes operative only on formal notification. Until then, continue applying the existing ₹15,000 ceiling and do not alter payroll deductions based on media or press-briefing statements. We are tracking the Ministry of Labour & Employment and EPFO notification channels and will circulate the confirmed effective date and implementation steps once it is published.
What changes once notified
- Employees currently NOT enrolled in PF (because they joined at a wage above ₹15,000 and were never brought under mandatory coverage): if their PF wage falls between ₹15,000–25,000, they become mandatorily coverable from the effective date. This is a fresh-enrolment action, and identifying this population is to be initiated.
- Existing members currently capped at ₹15,000:
- If actual wage is ₹25,000 or below → contribution must move to the full actual wage.
- If actual wage is above ₹25,000 → employer may either continue capping contribution (now at ₹25,000 instead of ₹15,000) or contribute on full actual wages, whichever is existing practice.
- Existing members already contributing on actual wages above ₹25,000 (uncapped): no change. This revision is a floor, not a licence to reduce any existing contribution.
- EPS coverage: Employees newly brought into PF in the ₹15,000–25,000 band will get EPS (pension) coverage only if the EPS wage ceiling is also raised to ₹25,000 — which historically happens alongside PF ceiling revisions (as in 2014) but requires its own separate notification, not yet issued. We’ll confirm the position once the EPS notification is out.
- If EDLI’s insured sum (currently linked to the wage ceiling) is revised correspondingly, insurance cover for the newly covered band will also increase.
Do not
- Do not reduce any employee’s existing PF contribution.
- Do not change payroll systems or communicate a new deduction figure to employees until the Gazette notification is in hand.
Cost impact
- Employee / Employer PF contribution may rise from approximately ₹1800 to ₹3000/employee/month on average for affected employees.
- Compulsory EPS contribution may rise from approximately ₹1,250 to approximately ₹2,083/employee/month for affected employees.
We will issue a detailed follow-up circular with confirmed effective date and implementation timelines immediately on publication of the official notification. Please do not act on media reports or ministerial statements alone in the interim.