Quick answer: From 17 September 2026, the EPF wage ceiling was raised from ₹15,000 to ₹25,000 a month, the first change since 2014. Three things follow:
- Employees whose PF wages are up to ₹25,000 must now be covered by PF.
- Where PF was capped at ₹15,000, both employee and employer contributions go up to 12% of wages up to ₹25,000.
- The maximum EPS (pension) contribution rises from ₹1,250 to ₹2,083 a month.
Use the free calculator below to see your own salary before and after the change.
Key takeaways
- PF wages up to ₹15,000: nothing changes.
- PF wages between ₹15,000 and ₹25,000: PF coverage is now mandatory. The Cabinet estimate is that over 51 lakh more workers come under PF.
- PF wages above ₹25,000 with PF capped at the ceiling: the employee share goes from ₹1,800 to ₹3,000 a month, and take-home pay falls by ₹1,200.
- PF already deducted on full wages: take-home pay doesn’t change, but ₹833 a month moves from EPF to EPS (pension).
- Under the new Labour Codes, Basic + DA must be at least 50% of pay. This can raise PF wages too.
↓ Jump to the free PF calculator
What changed in September 2026
| Before (Sep 2014 – Sep 2026) | From 17 September 2026 | |
|---|---|---|
| EPF wage ceiling | ₹15,000 a month | ₹25,000 a month |
| Mandatory PF coverage | Wages up to ₹15,000 | Wages up to ₹25,000 |
| Employee PF (12%) when capped at the ceiling | Up to ₹1,800 | Up to ₹3,000 |
| EPS (pension) – 8.33% of wages up to the ceiling | Up to ₹1,250 | Up to ₹2,083 |
| EDLI (insurance) – 0.5% up to the ceiling | Up to ₹75 | Up to ₹125 |
The change was notified in the Official Gazette (S.O. 5109(E), 17 September 2026) under the Code on Social Security. The contribution rates are the same: 12% from the employee and 12% from the employer. Only the wage limit they apply to has changed.
PF calculation examples (monthly)
| Salary | Employee PF – old | Employee PF – new | EPS – old → new | Take-home change |
|---|---|---|---|---|
| Basic + DA ₹12,000 (gross ₹18,000) | ₹1,440 | ₹1,440 | ₹1,000 → ₹1,000 | No change |
| Basic + DA ₹20,000 (gross ₹30,000), PF capped | ₹1,800 | ₹2,400 | ₹1,250 → ₹1,666 | – ₹600 |
| Basic + DA ₹40,000 (gross ₹60,000), PF capped | ₹1,800 | ₹3,000 | ₹1,250 → ₹2,083 | – ₹1,200 |
| Basic + DA ₹40,000, PF on full wages | ₹4,800 | ₹4,800 | ₹1,250 → ₹2,083 | No change (EPF share −₹833) |
Lower take-home pay isn’t lost money. The extra employee PF, plus the employer’s EPF share, is credited to your PF account and earns interest. The employer’s EPS part builds your pension.
How to calculate PF now (step by step)
- Find PF wages: Basic + DA. Under the new Labour Codes, if Basic + DA is less than 50% of your total pay, the shortfall is added back.
- Apply the ceiling: if your employer caps PF, take the lower of PF wages and ₹25,000. If PF is on full wages, use full PF wages.
- Employee PF = 12% of the result. This is deducted from your salary.
- Employer EPS = 8.33% of PF wages up to ₹25,000 (maximum ₹2,083). This is 0 for employees aged 58 or over, or who are not EPS members.
- Employer EPF = employer 12% minus EPS.
- The employer also pays EDLI at 0.5% (up to ₹125) and admin charges at 0.5%.
The 50% wage rule makes this bigger
The new Labour Codes, in force since 21 November 2025, say that allowances such as HRA and conveyance can’t be more than half of total pay. If they are, the excess counts as wages. For example, take a salary of ₹40,000 with Basic of only ₹12,000. PF wages become ₹20,000 (50% of ₹40,000), not ₹12,000. With the new ₹25,000 ceiling, all ₹20,000 now counts for PF. The calculator has a Yes/No switch for this rule.
What employers should do
- List employees with PF wages between ₹15,000 and ₹25,000 who were not in PF, and register them. They now need UANs.
- Update payroll to the ₹25,000 ceiling for EPS and EDLI. The EPS maximum is now ₹2,083.
- Recheck salary structures against the 50% rule.
- September 2026 payroll: the change applies from 17 September. When we checked, EPFO had not published clear guidance on splitting September, and many advisers simply apply ₹25,000 for the whole month. Check the EPFO employer portal and your consultant before you file the September ECR.
Running payroll for a shop or office? XplorePay – Payroll Software in Excel already uses the ₹25,000 ceiling (and ₹15,000 for earlier months). It covers PF, EPS, EDLI, ESI, professional tax, the 50% wage rule, payslips, the bank transfer sheet and the PF ECR for up to 100 employees. For simple attendance and salary, see our free Attendance & Salary Sheet.
Download the free PF Calculator 2026 (Excel)
It is a single sheet with no macros and works in Excel, Excel for Mac and Google Sheets. Type your Basic, DA and allowances to see your PF, EPS, EDLI, employer cost and take-home pay under the old and new ceilings side by side.
FAQs
When did the PF wage ceiling become ₹25,000?
From 17 September 2026. It replaced the ₹15,000 ceiling that had applied since September 2014.
Will my take-home salary go down?
Only if your PF wages are above ₹15,000 and your employer was capping PF at ₹15,000. The most it can go down is ₹1,200 a month, for PF wages of ₹25,000 or more. That money goes into your PF account.
I earn ₹22,000 and was never in PF. Do I have to join now?
If your PF wages are up to ₹25,000 and your employer is covered by EPFO, coverage is now mandatory. Ask your employer for a UAN.
Does the employer’s cost go up?
Yes, for employees whose PF was capped at ₹15,000: up to ₹1,200 a month more in contributions, plus about ₹100 in EDLI and admin charges. For employees already on full-wage PF, only about ₹50 more EDLI.
Does my pension (EPS) increase?
The EPS contribution goes up to as much as ₹2,083 a month. How the higher contribution affects your final pension depends on EPS rules for each period of service. Check your EPFO passbook and EPFO’s official guidance.
Has the ESI limit changed too?
No. The ESI wage limit is still ₹21,000 a month.
Information as on October 2026, from the Ministry of Labour & Employment press release and the Gazette notification. This article is for information only, not legal advice.
More free salary & tax templates
- Attendance & Salary Sheet with Salary Slip
- Income Tax Calculator FY 2026-27
- Rent Receipt Generator with HRA Calculator
- All Excel templates
