The Ministry of Labour and Employment has notified ₹25,000 per month as the wage ceiling for the Employees' Provident Fund chapter (Chapter III) of the Code on Social Security, 2020, with effect from 17 September 2026 (Notification S.O. 5109(E) dated 17.09.2026). The earlier ceiling was ₹15,000.
What changes
- Mandatory enrolment: employees whose Basic + DA is up to ₹25,000 a month must now be enrolled in PF. Staff earning between ₹15,001 and ₹25,000 who were earlier "excluded employees" now need a UAN and must be included in the ECR.
- Contribution base: statutory contributions are worked out on wages up to ₹25,000, so the maximum employee share at 12% is ₹3,000 a month.
- Pension (EPS): the employer's 8.33% EPS share is worked out on wages up to the ceiling. The balance of the employer's 12% goes to EPF.
- Wage definition: "wages" follow s. 2(88) of the Code. If excluded allowances exceed 50% of total pay, the excess is added back.
Employer checklist
- List every employee with Basic + DA between ₹15,001 and ₹25,000.
- Generate or link UANs for those employees and complete Aadhaar KYC.
- Update the payroll software so contributions are worked out on the new ceiling from the September 2026 wage month.
- File the ECR and pay the challan by the 15th of the following month to avoid interest under s. 127 and damages under s. 128 of the Code (old ss. 7Q and 14B of the EPF Act).
Try our PF calculator, which uses the ₹25,000 ceiling, or let us handle your monthly filing.