The government has raised the Employees’ Provident Fund Organisation (EPFO) wage ceiling for mandatory coverage from ₹15,000 to ₹25,000 per month, effective September 17, 2026. The move is expected to bring more than 51 lakh additional employees under mandatory EPFO coverage.
For salaried employees, the impact will depend on their current PF contribution and salary structure. Employees earning between ₹15,000 and ₹25,000 per month who were previously outside mandatory EPF coverage could now be required to contribute to the scheme.
Employees whose PF contribution was earlier capped at ₹15,000 could also see a higher deduction. At the standard 12% employee contribution rate, the monthly contribution could rise from ₹1,800 to ₹3,000, an increase of ₹1,200 per month. The employer contribution would also increase correspondingly where the new ceiling applies.
This could mean a lower monthly take-home salary for some employees, but the additional amount would go towards their long-term retirement savings. The higher contribution can therefore result in a larger EPF corpus over time.
Employees who are already contributing to EPF based on their actual wages, rather than the ₹15,000 ceiling, may see little or no immediate change. The final impact will depend on the employee’s PF wage, existing membership status and salary structure.
The government says the higher ceiling is intended to expand formal social security coverage and provide more employees with access to provident fund, pension and insurance-related benefits.