EPF wage ceiling raised to ₹25,000: what changes on your payslip
The PF wage ceiling went from ₹15,000 to ₹25,000 on 17 September 2026. What it means for take-home pay, your EPF balance and your EPS pension.
Try it: EPF calculatorWork out your EPF corpus at 58 at 8.25% interest, with the ₹25,000 wage ceiling, salary hikes, VPF and an EPS pension estimate.The Union Cabinet approved raising the EPF wage ceiling from ₹15,000 to ₹25,000 a month on 16 September 2026, and the Ministry of Labour and Employment notified it the next day. It is the first change since September 2014. The ceiling is the pay on which PF contributions are compulsory, so this one number changes payslips, EPF balances and pensions for millions of people.
Who it affects
- People earning up to ₹25,000 who were not covered before. The government says about 51 lakh more workers come under compulsory EPF, EPS pension and EDLI insurance.
- People whose basic pay plus DA is above ₹15,000 and whose PF was worked out on ₹15,000. Their compulsory contribution goes up.
- People whose PF was already worked out on full basic pay. Little changes, except the pension split described below.
What happens to take-home pay
You contribute 12% of your PF wages. On a basic pay of ₹25,000 or more, with PF worked out on the ceiling, your share goes from ₹1,800 to ₹3,000 a month. That is ₹1,200 less in your bank account each month, but it is not lost: it goes into your EPF account and earns 8.25% a year. Try your own numbers in the salary calculator.
Where your employer's share goes
Your employer also pays 12%. Of that, 8.33% of your pay up to the ceiling goes to the Employees' Pension Scheme, and the rest to your EPF account.
- Before: up to ₹1,250 a month to EPS.
- Now: up to ₹2,083 a month to EPS, and ₹917 to EPF on a ₹25,000 wage.
So more of the employer's share now builds your pension and less builds your EPF balance.
What happens to the pension
EPS pension is pensionable wages times years of service, divided by 70, with at least 10 years of service. The new ceiling does not apply backwards: under EPS 2026 each period of service counts at the ceiling in force then, so years before 17 September 2026 count at up to ₹15,000 and later years at up to ₹25,000. For example, 10 years before and 25 years after the change would give (₹15,000 × 10 + ₹25,000 × 25) ÷ 70, about ₹11,070 a month, against ₹7,500 on the old ceiling alone. The minimum pension stays ₹1,000 a month.
September 2026 payslips
For the September 2026 wage month, EPFO has asked employers to use the old ceiling for 1 to 16 September and the new one from 17 September. You may see an odd amount on that one payslip.
What to do
- Check your October payslip: your PF line should reflect the new ceiling if your basic pay is above ₹15,000.
- Check your EPFO passbook after a month or two to see the new amounts credited.
- If you earn above ₹25,000 and want to save more, you can still choose to contribute on full basic, or add voluntary PF. Your employer does not have to match it.
Sources: EPS 2026, Gazette G.S.R. 527(E), Ministry of Labour and Employment note on the wage ceiling, SCC Online on the Cabinet decision, Business Today on EPS 2026 and the minimum pension.
Rules, rates and limits change. Check the official source linked above before you rely on a figure here. Posts never contain referral or affiliate links from the writer.
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