PF wage ceiling rises to ₹25,000 from September 2026
The monthly wage limit for compulsory provident fund contributions goes from ₹15,000 to ₹25,000 from the September 2026 salary month. Here is what changes and what to check in payroll.
Updated 3 October 2026 · Published 3 October 2026
What changed
The Central Government notified a higher EPF wage ceiling in the Gazette (S.O. 5109(E)), announced in PIB release 2314111. Contributions are computed on wages up to the new ceiling of ₹25,000 a month from the September 2026 salary month. For earlier months the ₹15,000 ceiling still applies.
What it does to the numbers
Employee and employer each contribute 12% of PF wages up to the ceiling. The employer share splits into EPS (8.33%) and EPF (3.67%). EDLI is 0.5% of PF wages, paid by the employer.
| Item | At ₹15,000 ceiling | At ₹25,000 ceiling |
|---|---|---|
| Employee PF (12%) | ₹1,800 | ₹3,000 |
| Employer PF (12%) | ₹1,800 | ₹3,000 |
| of which EPS (8.33%) | ₹1,250 | ₹2,083 |
| EDLI (0.5%) | ₹75 | ₹125 |
- These figures are for an employee whose PF wages are at or above the ceiling. Below it, contributions are on actual PF wages.
Check these in payroll
- Take-home pay falls for employees earning above ₹15,000 a month, so tell them before the September payslip.
- PF wages follow the labour-code wage definition (the larger of basic pay and 50% of total remuneration), then the ceiling is applied.
- The ECR for September 2026 onwards must carry wages at the new ceiling. Reprocess September payroll if it was run with the old one.
- EPS is capped at 8.33% of the ceiling, about ₹2,083 a month. The difference goes to the employee EPF account.
In AdviHR
AdviHR applies the ₹25,000 ceiling from the September 2026 salary month and the ₹15,000 ceiling before it. The payslip, the ECR 2.0 file and the employer cost all use the ceiling for the month they belong to, so an old payslip is never recalculated with the new limit.
Try it with your numbers
In-hand salary calculator, free, no sign-up.
Frequently asked questions
From which month does the ₹25,000 ceiling apply?
From the September 2026 salary month. Earlier months keep the ₹15,000 ceiling.
Is PF calculated on wages above the ceiling?
Statutory contributions are computed on wages up to the ceiling. Contributing on a higher wage is by agreement between employer and employee.
What is the maximum EPS contribution now?
8.33% of ₹25,000, which is about ₹2,083 a month.
Do I need to change the ECR file format?
No. The ECR 2.0 format is the same. The wage figures in it change.
Sources
- Gazette notification S.O. 5109(E), Ministry of Labour and Employment
- PIB press release 2314111
How sure are we? These figures use the same rules AdviHR payroll applies. We publish what has been checked against an official source and what has not, on the statutory accuracy page.
General information, not legal or tax advice. Confirm against the official notification and your adviser before acting.
Let payroll apply these rules for you.
AdviHR keeps statutory rules by financial year and produces the files you upload to the portals.