Stories
EPFO New Rule: PF Wage Ceiling Hikes to ₹25,000; Will Your Take-Home Salary Drop?
- •The central government increased the EPFO wage ceiling from ₹15,000 to ₹25,000 per month after 12 years.
- •Effective September 17, 2026, this change is expected to bring over 51 lakh additional employees under EPFO coverage.
- •Employees with a basic salary between ₹15,000 and ₹25,000 will be most affected by the new rule.
- •Some employees may see a decrease in take-home salary, with PF contributions potentially rising from ₹1,800 to ₹3,000.
- •New members gain social security, pension, and insurance benefits, while existing members may experience minimal change.
Key Questions Answered
The central government has increased the wage ceiling for mandatory Employees' Provident Fund Organisation (EPFO) coverage from ₹15,000 to ₹25,000 per month. This updated limit officially became effective on September 17, 2026.
Take-home salaries may decrease for employees whose PF-eligible salary ranges between ₹15,000 and ₹25,000 and who were previously outside mandatory coverage. With a 12% employee contribution applied to the higher limit, monthly contributions could rise from ₹1,800 to ₹3,000, resulting in an extra deduction of ₹1,200 per month.
Employees earning a basic salary between ₹15,000 and ₹25,000 who were previously excluded from mandatory coverage stand to benefit the most. They will now gain formal social security coverage, including PF savings, pension under EPS, and insurance protection via the EDLI scheme.
