From 17 September 2026, Provident Fund is worked out on wages up to ₹25,000 a month instead of ₹15,000 — the first change since 2014. Here is what it means for take-home pay, employer cost and the September payroll.
| Up to 16 Sept 2026 | From 17 Sept 2026 | |
|---|---|---|
| PF wage ceiling | ₹15,000 a month | ₹25,000 a month |
| Maximum employee PF (12%) | ₹1,800 | ₹3,000 |
| Maximum employer EPS (8.33%) | ₹1,250 | ₹2,083 |
| Maximum employer EPF (3.67% on the ceiling) | ₹550 | ₹917 |
| Contribution rates | Unchanged — 12% employee, 12% employer | |
Notification S.O. 5109(E) dated 17 September 2026, under the Code on Social Security, 2020, covering EPF, EPS and EDLI. Approved by the Union Cabinet on 16 September 2026; about 51 lakh more employees come under mandatory coverage.
The ₹15,000 limit had stood since September 2014, while minimum wages for unskilled workers in several States and Union Territories had already gone past it — so many low-paid workers fell outside compulsory PF. In January 2026 the Supreme Court directed the Centre and EPFO to decide on revising the ceiling within four months. The Cabinet approved the new ₹25,000 ceiling on 16 September 2026 and it was notified the next day.
PF coverage is decided on PF wages as defined in section 2(88) of the Code on Social Security — not on gross salary or CTC. The EPFO's FAQs warn that the new ceiling should not be applied mechanically: check where each employee stands.
| Employee | What changes from 17 Sept 2026 |
|---|---|
| PF wages up to ₹15,000 | Nothing — PF was already on actual wages. |
| PF wages ₹15,001–₹25,000, not a PF member | Must be enrolled in EPF, EPS and EDLI. The employer does this; no application is needed from the employee. |
| PF wages ₹15,001–₹25,000, member capped at ₹15,000 | PF moves to actual wages. If they were outside EPS, they join it and 8.33% of the employer's share goes to pension. |
| PF wages above ₹25,000, existing member | Statutory contribution on ₹25,000 (up from ₹15,000). Those already contributing on higher actual wages need not reduce. |
| PF wages above ₹25,000, not a member | Not compulsorily covered. May join voluntarily with the employer's consent. |
| PF wages | Employee 12% | Employer EPS 8.33% | Employer EPF 3.67% | EDLI 0.5% | Admin 0.5% |
|---|---|---|---|---|---|
| ₹10,000 | ₹1,200 | ₹833 | ₹367 | ₹50 | ₹50 |
| ₹15,000 | ₹1,800 | ₹1,250 | ₹550 | ₹75 | ₹75 |
| ₹20,000 | ₹2,400 | ₹1,666 | ₹734 | ₹100 | ₹100 |
| ₹25,000 | ₹3,000 | ₹2,083 | ₹917 | ₹125 | ₹125 |
| ₹35,000 (not in EPS) | ₹3,000 | Nil | ₹3,000 | ₹125 | ₹125 |
The employer's total outgo is 13% of PF wages (12% share + 0.5% EDLI + 0.5% admin; admin charges have a minimum of ₹500 a month per establishment). Try any figure in the updated PF calculator.
Take an employee with PF wages of ₹20,000 who was contributing on the old ₹15,000 cap:
| Before | From Oct 2026 | |
|---|---|---|
| Employee PF deducted | ₹1,800 | ₹2,400 |
| Employer EPF + EPS | ₹1,800 | ₹2,400 |
| Take-home pay | ₹600 a month lower | |
| Going into PF + pension each month | ₹3,600 | ₹4,800 |
The extra deduction is not lost — it is saved in the employee's own account and earns PF interest (8.25% for 2025-26), and the employer matches it. See the full effect on monthly salary with the in-hand salary calculator.
Because the change took effect mid-month, September is worked out in two periods, each pro-rated on 30 days:
Example — existing member capped at ₹15,000, PF wages ₹20,000: ₹15,000 × 16/30 = ₹8,000, plus ₹20,000 × 14/30 = ₹9,333.33, gives September PF wages of ₹17,333.33 and an employee contribution of ₹2,080.
Newly enrolled employee, PF wages ₹20,000: only 17–30 September counts — ₹9,333.33 of PF wages and an employee contribution of ₹1,120.
For anyone at or above ₹25,000, September PF wages come to ₹8,000 + ₹11,666.67 = ₹19,666.67.
If September payroll had already closed before the change, the EPFO FAQs allow the employee's share for 17–30 September to be recovered in the next (October) payroll — but the full amount, both shares, must still be reported and paid with the September return.
One ECR covers all of September. It was originally due by 15 October 2026; EPFO is reported to have extended the deadline for the September 2026 wage month to 31 October 2026 (circular dated 13 October 2026) and to relax portal checks for the pro-rated contributions. Confirm the current date on the EPFO employer portal before you file — late payment attracts interest and damages.
PF in SetuWork payroll is a pair of heads (employee and employer) with a rate and a wage ceiling, and every change is a new version with its own effective date. Add a version with a ₹25,000 ceiling from 17 September 2026: months already processed keep the figures they were paid on, and the next payroll run uses the new ceiling automatically.
This guide summarises the notification and EPFO's FAQs as published by 13 October 2026. It is general information, not legal advice — check the EPFO portal or your PF consultant for your case.
₹25,000 a month, up from ₹15,000, under notification S.O. 5109(E) issued under the Code on Social Security, 2020. It applies to EPF, EPS (pension) and EDLI (insurance) from 17 September 2026.
No. The employee still contributes 12% of PF wages and the employer 12% (8.33% to EPS and 3.67% to EPF). Only the wage limit has gone up, so the maximum employee contribution rises from ₹1,800 to ₹3,000 a month.
Neither. PF is calculated on PF wages as defined in the Code on Social Security (essentially Basic + DA and similar wage components), not on gross pay or CTC. Someone with a gross of ₹50,000 and PF wages of ₹25,000 is compulsorily covered; with PF wages of ₹30,000 they are not, though they may join voluntarily with the employer's consent.
Employees with PF wages above ₹15,000 and up to ₹25,000 who were not PF members before. The employer must enrol them in EPF, EPS and EDLI from 17 September 2026 — no application from the employee is needed. About 51 lakh more employees are expected to be covered.
8.33% of wages up to ₹25,000, which is ₹2,083 a month (it was ₹1,250 on ₹15,000). The Government's own EPS contribution stays at 1.16% of wages up to ₹15,000 (at most ₹174).
In two parts. 1–16 September uses the old ₹15,000 ceiling and 17–30 September the new ₹25,000 ceiling, each pro-rated on 30 days. Both parts go in one ECR for September.
If your PF wages are above ₹15,000, yes — your PF deduction rises (for example from ₹1,800 to ₹2,400 on PF wages of ₹20,000). But the money goes into your own PF account, and your employer's matching contribution rises by the same amount.
The EPFO FAQs say CTC is not a basis for PF liability and the employer's contribution cannot be passed on to the employee by describing it as part of CTC or by reducing statutory wages.
In SetuWork you add the ₹25,000 ceiling as a new PF version effective 17 September 2026 — payslips already issued stay exactly as they were. Free for teams up to 10 people — no card required.