EPFO Wage Ceiling Increased From ₹15,000 To ₹25,000 Per Month

Statutory wage ceiling for mandatory coverage under Employees’ Provident Fund Organisation (‘EPFO’) notified

Effective September 17, 2026, the wage ceiling for mandatory coverage under EPFO has been increased from ₹15,000 to ₹25,000 per month. The EPFO will undertake the necessary statutory and administrative steps for its implementation.

This change, the details of which are awaited, will expand access to provident fund savings, pension protection under the Employees’ Pension Scheme (‘EPS’) and insurance protection under the Employees’ Deposit Linked Insurance Scheme (‘EDLI’) in accordance with applicable provisions of the scheme.

IMPACT

• Enhanced coverage: Mandatory EPFO coverage will extend to additional employees.
• Enhanced monthly outlay: Increase in monthly contribution to EPFO for both employer and employee.
• Compliance with labour laws: Payroll systems, records and registers will have to factor this change.
• Retiral benefits: Though employee net take home reduces, retiral benefits increase.