Very good news for employed people
A very important and big news is coming out for crores of employed employees of the country regarding Employees Provident Fund i.e. EPF. The Central Government has directly increased the wage ceiling of EPF from Rs 15,000 to Rs 25,000 per month, after which big and important changes are going to be seen in the PF contribution of employees. Let us know in detail when this new system has been implemented, what effect it will have on your in-hand salary and when will the increased PF deduction start appearing in your salary slip.
What is the new change and who will benefit from it?
The Central Government has directly increased the wage ceiling of mandatory coverage under EPFO from Rs 15,000 to Rs 25,000 per month. This new and big change has also come into effect from 17 September 2026. With this change, all those employees getting salary between Rs 15,000 to Rs 25,000 are going to get huge benefits of EPF, pension and insurance schemes, who were earlier out of the mandatory scope due to the old salary limit. According to an estimate, this wonderful decision will easily bring about 51 lakh additional employees under the ambit of strong social security.
When and how will the increased PF be visible in the salary slip?
After the implementation of the new wage ceiling, all the companies across the country will have to make necessary changes in their payroll system and calculation of PF contribution. How this change will be reflected in your salary for the month of September depends entirely on the company's payroll process and the eligibility of the employee concerned. If a situation of excess contribution arises from the middle of September and the salary for that month is not deducted on time, then the remaining amount of the employee's share can be easily adjusted in the next payroll cycle. However, according to strict rules, the employer will have to deposit the entire contribution of the concerned month on time.
Will now every employee's PF be compulsorily deducted by Rs 3,000?
The big question running in the minds of many people at this time is whether Rs 3,000 will be compulsorily deducted from the account of every employee after the new limit is introduced? So let us tell you that this is not the case at all. The 12 percent contribution is always calculated on the basis of applicable PF wage and fixed rules.
For example, if an employee's PF wage is Rs 25,000 and his entire salary is eligible for contribution, then 12 per cent of the employee's share will work out to Rs 3,000. But the actual deduction always depends entirely on the qualification of the employee, his salary structure and the applicable rules. Additionally, for employees whose PF contribution is already being deducted as per their actual salary, merely increasing the wage ceiling will not necessarily result in a significant change in their contribution.
What effect will this have on your take-home salary?
If an employee's PF contribution increases, then it is simple that there may be a slight reduction in his take-home salary. But its second and most positive aspect is that by depositing more money in your PF account, a huge savings will be created for your future i.e. retirement. Therefore, all employees are advised to closely check the employee contribution, employer contribution and applicable EPS portion in their salary slip.