Payroll update · 17 September 2026
PF wage ceiling is now ₹25,000
The EPF wage ceiling rose from ₹15,000 to ₹25,000 a month. Here is what changes, and a calculator for what it costs your company.
What changed
| Per employee, per month | Before | From 17 Sep 2026 |
|---|---|---|
| PF wage ceiling | ₹15,000 | ₹25,000 |
| Employee PF (12%), at most | ₹1,800 | ₹3,000 |
| Employer PF (12%), at most | ₹1,800 | ₹3,000 |
| of which pension (EPS 8.33%) | ₹1,250 | ₹2,083 |
| EDLI insurance (0.5%), at most | ₹75 | ₹125 |
| Admin charges (0.5%), at most | ₹75 | ₹125 |
Anyone whose basic pay is above ₹15,000 pays more PF, up to ₹1,200 more a month, and the employer matches it. Employees earning basic of ₹25,000 or more pay the full ₹3,000.
What it costs your company
Your team's basic salaries
Group people by monthly basic pay (PF is worked out on basic). Add as many lines as you need.
Assumes your company caps PF at the ceiling, which most do. If you already pay PF on full basic, nothing changes for you.
Extra PF cost for your company
₹13,000 a month
₹1,56,000 a year, for 15 people (employer PF, admin charges and EDLI)
| Basic | Employee PF before → now | Take-home | Pension (EPS) now |
|---|---|---|---|
| ₹20,000 × 10 | ₹1,800 → ₹2,400 | −₹600 | ₹1,666 |
| ₹30,000 × 5 | ₹1,800 → ₹3,000 | −₹1,200 | ₹2,083 |
Take-home falls by the extra employee PF, but that money goes into the employee's PF account. Income tax may fall slightly in the old regime, where PF counts towards 80C.
Email me this cost report
The breakdown above, by email, to share with your finance team or CA.
What employers need to do
- Update the PF wage ceiling in your payroll to ₹25,000, and split September 2026 (₹15,000 up to the 16th, ₹25,000 from the 17th).
- Check your ECR file: EPF, EPS and EDLI wages are now capped at ₹25,000.
- Tell affected employees why their take-home pay dropped slightly and their PF went up.
- If your offers quote CTC, re-check the salary structure: the higher employer PF comes out of CTC. Try the CTC calculator.
Payroll that keeps up with the rules
Vijaya Rise already uses the ₹25,000 ceiling and works out PF, ESI, professional tax, labour welfare fund and TDS for every employee, with the ECR file ready for the EPFO portal. Free for up to 10 employees.
Free for up to 10 employees · No card needed
Common questions
When did the PF wage ceiling change?
From 17 September 2026 the EPF and EPS wage ceiling is ₹25,000 a month. It had been ₹15,000 since September 2014.
Who does it affect?
Employees whose PF wages (mainly basic pay) are above ₹15,000, at companies that cap PF at the ceiling. Their PF goes up to as much as ₹3,000 a month from each side. People earning basic up to ₹15,000 see no change.
What about September 2026 salaries?
September is split: the old ceiling applies to 1 to 16 September and the new one from 17 September. From October the full ₹25,000 applies.
Does pension (EPS) change too?
Yes. 8.33% of wages up to the ceiling goes to EPS, so the maximum pension contribution rises from ₹1,250 to ₹2,083 a month. The rest of the employer's 12% goes to EPF.
Does it change EDLI and admin charges?
Both are 0.5% of PF wages up to the ceiling, so they rise too. EDLI goes up to ₹125 a month per person. Admin charges keep their ₹500 monthly minimum per establishment.
Can employees choose to stay at ₹15,000?
PF on wages up to the ceiling is mandatory. Employees earning above it can, as before, contribute on the ceiling only, which is now ₹25,000. Check with your CA for employees who joined above the old ceiling and were not PF members.
Is Vijaya Rise payroll updated?
Yes. Vijaya Rise uses the ₹25,000 ceiling, works out EPF, EPS, EDLI and admin charges, and produces the ECR file for the EPFO portal.
Based on the EPFO notification of September 2026, as reported by payroll publishers. Confirm details for your company with your CA.