EPF wage ceiling raised from Rs 15,000 to Rs 25,000: what changed and from when
25 October 2026 · 2 min read · HireHo
Based on the Union Cabinet decision and Gazette notification S.O. 5109(E) of 17 September 2026, as reported by Moneylife, TaxGuru and Compliance Age. Summarised in our own words.
The Union Cabinet approved raising the provident fund wage ceiling from Rs 15,000 to Rs 25,000 a month. The wage ceiling was notified in the Gazette as S.O. 5109(E) on 17 September 2026 and, according to the reports we read, takes effect from the date of publication. Moneylife reports that more than 51 lakh additional workers are expected to come under mandatory social security cover.
What did not change
- The contribution rate stays at 12% for the employee and 12% for the employer.
- This is a ceiling for mandatory coverage. It is not a new rule that everyone's PF is cut on the full salary.
What the numbers look like
If a person's PF is calculated only up to the ceiling, the maximum contribution at 12% rises from Rs 1,800 to Rs 3,000 a month on each side. That is up to Rs 1,200 more a month, or Rs 14,400 a year, for the employee and the same for the employer.
Who is affected first
Workers whose basic pay falls between Rs 15,001 and Rs 25,000 are the group most likely to see a change. Those already paying PF on their full wages may see little or no extra cost.
A separate pension notification
A second notification dated 15 October 2026 (G.S.R. 890(E)) sets Rs 15,000 as the wage limit in one provision of the Employees' Pension Scheme, 2026, effective 17 September 2026. TaxGuru's reading is that the Rs 25,000 ceiling does not automatically raise that pension limit. The pension side is technical, so employers and workers should read both notifications together or ask a qualified professional.
We have summarised secondary reports of the notifications in our own words. Check the Gazette or the EPFO website for the exact text before acting.