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EPF wage ceiling raised to ₹25,000: what changes in your payroll
The Government has raised the wage ceiling under the Employees' Provident Fund scheme from ₹15,000 to ₹25,000 per month, effective 17 September 2026. It is the first change to the ceiling since 2014, and it affects most salaried employees.
What exactly changed
| Before 17-Sep-2026 | From 17-Sep-2026 | |
|---|---|---|
| PF wage ceiling | ₹15,000 | ₹25,000 |
| Max employee PF (12%) on capped wages | ₹1,800 | ₹3,000 |
| Max EPS (8.33%) | ₹1,250 | ₹2,083 |
| Max EDLI (0.5%) | ₹75 | ₹125 |
ESI is not affected — its limit remains ₹21,000 gross per month.
Who is affected
- Employers who restrict PF to the ceiling: PF for employees earning above ₹15,000 basic goes up. Employee take-home falls slightly, and employer cost rises by the same amount.
- Employers who already pay PF on full basic: total PF doesn't change, but the split moves — more goes to the pension (EPS) and less to EPF.
- Employees aged 58 and above: no EPS contribution, so no EPS change.
- New members: employees earning between ₹15,000 and ₹25,000 who were outside PF are now covered.
September 2026 is a split month
Contributions for 1–16 September use the old ₹15,000 ceiling and 17–30 September the new ₹25,000 ceiling, in proportion to days. Payroll by Briltus works this out automatically (a blended ceiling of about ₹19,667 for September).
What to do now
- Check whether your salary structures cap PF at the ceiling.
- Re-run the salary calculator for offers in progress — take-home may change.
- Tell affected employees why their PF deduction has gone up.
- Make sure your October ECR uses the new ceiling.
This article is general information, not legal advice. Check the official notification and consult your adviser for your situation.
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