EPFO wage ceiling rises to ₹25,000: How much will go towards your PF, EPS and EDLI in September 2026?
The Employees’ Provident Fund Organisation (EPFO) has raised the wage ceiling for mandatory EPF coverage from ₹15,000 to ₹25,000 a month, effective 17 September 2026.
This means if you earn ₹20,000 a month and were earlier outside mandatory EPF coverage because your wages exceeded ₹15,000, you can come under EPF from 17 September. But September is a transition month: the old ₹15,000 ceiling applies for 1–16 September, while the revised ₹25,000 ceiling applies from 17 September.
EPFO has shared the September calculation framework on X, explaining how EPF, Employees’ Pension Scheme (EPS) and Employees’ Deposit Linked Insurance (EDLI) will be calculated in different employee situations.
What happens to an employee earning ₹20,000?
The three scenarios in EPFO’s calculation are based on the employee’s PF status before and after 17 September.
| Contribution head for September 2026 | Scenario A: New EPF member from 17 Sept | Scenario B: Existing EPF member; EPS starts from 17 Sept | Scenario C: Existing EPF + EPS member; wages move from ₹15,000 to ₹20,000 |
| EPF wages: 1–16 Sept | ₹0 | ₹10,666.67 | ₹8,000.00 |
| EPF wages: 17–30 Sept | ₹9,333.33 | ₹9,333.33 | ₹9,333.33 |
| Total EPF wages for September | ₹9,333.33 | ₹20,000.00 | ₹17,333.33 |
| Total EPS wages for September | ₹9,333.33 | ₹9,333.33 | ₹17,333.33 |
| Employee EPF contribution (12%) | ₹1,120.00 | ₹2,400.00 | ₹2,080.00 |
| Employer EPF contribution | ₹342.53 | ₹1,622.53 | ₹636.13 |
| Employer EPS contribution | ₹777.47 | ₹777.47 | ₹1,443.87 |
| Employer EDLI contribution (0.50%) | ₹46.67 | ₹100.00 | ₹86.67 |
| Total employee + employer EPF/EPS contribution | ₹2,240 | ₹4,800 | ₹4,160 |
*Source: EPFO (@officialepfo); The September 2026 calculation is illustrated using a ₹20,000 monthly wage across three employee scenarios based on their EPF and EPS status.
Scenario A: You join EPF from 17 September
Suppose you earn ₹20,000 a month but were not covered by EPF until 16 September because your wages exceeded the old ₹15,000 ceiling.
- 1–16 September: No EPF contribution.
- 17–30 September: EPF wages = ₹20,000 × 14/30 = ₹9,333.33
- Your EPF contribution: 12% × ₹9,333.33 = ₹1,120
- Employer’s EPF contribution: 3.67% × ₹9,333.33 = ₹342.53
- Employer’s EPS contribution: 8.33% × ₹9,333.33 = ₹777.47
- Total EPF + EPS contribution: ₹2,240
Separately, the employer contributes ₹46.67 towards EDLI, which provides life-insurance cover to eligible EPF members. This amount is not credited to your EPF account.
Scenario B: You already had EPF, but joined EPS from 17 September
Here, you were already an EPF member, and your ₹20,000 wages were used for EPF throughout September. However, EPS coverage begins only from 17 September.
Scenario C: You were already in EPF and EPS
In this case, you were already an EPF and EPS member, but contributions were capped at ₹15,000 until 16 September.
For the first 16 days, the wage used is:
- ₹15,000 × 16/30 = ₹8,000
For the remaining 14 days, it becomes:
- ₹20,000 × 14/30 = ₹9,333.33
So the total September EPF and EPS wage is ₹17,333.33.
- Your EPF contribution: 12% × ₹17,333.33 = ₹2,080
- Employer’s EPF contribution: ₹636.13
- Employer’s EPS contribution: ₹1,443.87
- Total EPF + EPS contribution: ₹4,160
Disclaimer: This is only for informational and educational purposes. Please consult a qualified expert for the latest laws and regulations.
