EPFO Wage Ceiling Increased to 25,000 Rupees
The monthly wage limit for calculating mandatory Provident Fund contributions has increased from 15,000 to 25,000 rupees.
- Document
- Circulars & notices
- Dated
- 29 Sep 2026
- Effective
- 17th September 2026
- Act by
- 17th September 2026
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- The new wage ceiling is 25,000 rupees per month.
- This change applies to all employees covered under the Social Security Code.
- Employers must update payroll systems to reflect the higher contribution limit.
- The new rule is effective from 17th September 2026.
In short
This circular from the Employees' Provident Fund Organisation (EPFO) announces an increase in the wage ceiling used to calculate mandatory retirement savings contributions.
What has changed
How it worked before
Until 17th September 2026, the wage ceiling for calculating Provident Fund contributions was capped at 15,000 rupees per month.
What has changed
The government has raised the maximum monthly wage limit for Provident Fund calculations to 25,000 rupees.
Who this affects
Employers and employees covered under the Code on Social Security.
An example
If you run a small business and pay an employee 30,000 rupees per month, you previously calculated their Provident Fund contribution based on a 15,000 rupee limit. Under the new rule, you must now calculate their contribution based on the new 25,000 rupee ceiling. This will increase the total monthly contribution amount for both the employer and the employee.
What you should do
Employers must update their payroll software and accounting systems to calculate Provident Fund contributions based on the new 25,000 rupee limit.
Deadline · 17th September 2026If you do nothing
If you fail to update your payroll, you will underpay the required Provident Fund contributions. This can lead to interest charges, penalties, and formal notices from the EPFO for non-compliance.
The terms explained
- Wage ceiling
- The maximum monthly salary amount used to calculate mandatory Provident Fund contributions.
- Code on Social Security
- A law that combines various rules regarding employee benefits like retirement savings and insurance.
- Provident Fund
- A government-managed retirement savings scheme where employers and employees contribute a portion of the salary.
The original document
| Issued by | EPFO |
|---|---|
| Document | Circulars & notices |
| Full title | Wage Ceiling Circular 28.09.2026 |
| Issued on | 29 September 2026 |
| Effective | 17th September 2026 |
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