EPF wage ceiling raised to ₹25,000 a month from 17 September 2026
TaxByKK · Compliance News · taxbykk.com17 Sep 2026
In short
The Central Government has raised the wage ceiling for mandatory provident fund coverage from ₹15,000 to ₹25,000 a month, with effect from 17 September 2026. The notification is issued under section 2(89) of the Code on Social Security, 2020, for Chapter III of the Code (Employees' Provident Fund).
- Authority
- Ministry of Labour and Employment
- Notification
- S.O. 5109(E) dated 17 September 2026
- Type
- Notification
- Effective from
- 17 September 2026 (date of Gazette publication)
- Law
- Code on Social Security, 2020, section 2(89), Chapter III
- Replaces
- S.O. 2702(E) dated 29 May 2026
What changed
| Item | Before | Now |
|---|---|---|
| Wage ceiling for mandatory EPF coverage | ₹15,000 a month | ₹25,000 a month |
The ceiling had stayed the same since September 2014, when it was raised to ₹15,000. The Union Cabinet approved the increase on 16 September 2026, and the Government expects more than 51 lakh additional employees to come under mandatory EPFO coverage.
Who it applies to
- Every establishment covered by EPF, and its payroll team
- Employees whose monthly wages are between ₹15,000 and ₹25,000: they now come under mandatory provident fund, pension (EPS) and insurance (EDLI) coverage
- CAs, payroll processors and HR consultants who prepare monthly EPF returns (ECR)
What to do
- List employees whose wages fall between ₹15,000 and ₹25,000 and enrol those not yet covered.
- Recalculate employer and employee contributions on wages up to ₹25,000 for those already covered at the ₹15,000 cap.
- Check from which wage month the new ceiling applies; EPFO has issued FAQs on the revised wage ceiling.
- Update the payroll software and the wage fields in the ECR before filing the next return.
- Look at the PMVBRY incentive: EPFO says employers may recoup up to ₹3,000 a month per employee (2 years for non-manufacturing, 4 years for manufacturing), subject to Aadhaar and KYC.
Reference
S.O. 5109(E), Ministry of Labour and Employment, Gazette of India Extraordinary, Part II, Section 3(ii), No. 4918, 17 September 2026; F. No. R-12025/01/2026-SS-II.
Read the official PDF: Gazette notificationWritten by TaxByKK from the official notification. Check the official text before you act on it.
Frequently asked questions
What is the new EPF wage ceiling?
₹25,000 a month, up from ₹15,000, for mandatory coverage under Chapter III of the Code on Social Security, 2020.
From when does the ₹25,000 ceiling apply?
From 17 September 2026, the date S.O. 5109(E) was published in the Gazette.
Which notification raised the EPF wage ceiling?
S.O. 5109(E) dated 17 September 2026, issued under section 2(89) of the Code on Social Security, 2020. It supersedes S.O. 2702(E) dated 29 May 2026.
How many employees will be newly covered?
The Government's estimate is more than 51 lakh additional employees.
Is there any relief for employers on the higher contribution?
EPFO says employers may recoup part of the extra cost through the PMVBRY incentive of up to ₹3,000 a month per employee, for 2 years (non-manufacturing) or 4 years (manufacturing).