The Union Cabinet on 16 September 2026 raised the wage ceiling for mandatory EPFO coverage from ₹15,000 to ₹25,000 a month. Labour Minister Dr. Mansukh Mandaviya said the new ceiling takes effect from 17 September 2026, Vishwakarma Jayanti and Sewa Divas. More than 51 lakh extra employees are expected to come under provident fund, EPS pension and EDLI insurance.
If you are short on time, read the deduction table, then the withdrawal rules, then the RTI sample.
Quick answer: From 17 September 2026, a new employee on wages up to ₹25,000 a month is covered under EPFO. Employee and employer each still pay 12% of wages, capped at the ceiling. Partial withdrawals keep a 25% minimum balance. Full premature settlement after leaving a job waits 12 months.
The wage ceiling is the monthly wage limit used for mandatory EPFO membership and for the statutory contribution cap. Below the ceiling, coverage is compulsory in a covered establishment. Above it, a new joiner is an excluded employee unless the member and employer contribute on higher wages. The ceiling also caps the EPS pensionable wage.
The Cabinet, chaired by the Prime Minister, approved the Ministry of Labour and Employment proposal on 16 September 2026. The official PIB Cabinet note (Release ID 2310811) says:
A second PIB Labour Ministry note (Release ID 2310973) records Dr. Mandaviya's briefing: the revised ceiling comes into effect on 17 September 2026. Both notes say the Ministry and EPFO will complete the statutory and administrative steps.
The last hike was in September 2014, when the ceiling moved from ₹6,500 to ₹15,000. It had stayed at ₹6,500 from 2004 to 2014. PIB says several States now have minimum wages near the old ₹15,000 line, so the old cap no longer matched the labour market.
Gazette watch. The Code on Social Security, 2020, section 2(89), lets the Central Government notify the wage ceiling. On 29 May 2026 that ceiling was still ₹15,000, by S.O. 2702(E). The Cabinet decision of 16 September 2026 is the policy. Payroll and claims should follow the replacement notification on egazette.gov.in and the live circulars on epfindia.gov.in. Until that instrument is on the gazette, quote the PIB date of 17 September 2026 and keep a copy of your wage register.
EPFO currently administers about 7.98 crore contributing members across about 7.68 lakh contributing establishments. EPS pays about 82 lakh pensioners. Those figures are from the 16 September 2026 Cabinet note.
| Item | Until 16 Sep 2026 | From 17 Sep 2026 (Cabinet / Minister) |
|---|---|---|
| Mandatory coverage ceiling | ₹15,000 a month | ₹25,000 a month |
| Extra workers expected | n/a | more than 51 lakh |
| Last ceiling change | September 2014 | 12 years later |
| Employee + employer rate | 12% + 12% of wages | unchanged |
| EPS diversion (8.33% of ceiling) | about ₹1,250 | ₹2,082.50 on a full ₹25,000 ceiling |
| Government annual outgo (estimate) | about ₹10,250 crore | about ₹11,339 crore |
PIB Cabinet decision Official wage-ceiling announcement. pib.gov.in
EPFO member portal Passbook, claims, KYC, transfer. epfindia.gov.in
EPFiGMS grievance Stuck claim, missing credit, KYC error. epfigms.gov.in
This wiki does not host the government list. Use the official sites above.
EPFO is a statutory social-security body under the Ministry of Labour and Employment. From 29 June 2026 the operative schemes sit under the Code on Social Security, 2020 (36 of 2020), Chapter III:
The EPF Scheme, 2026 is in the Gazette of India Extraordinary, Part II, Section 3(i), No. 473 of 29 June 2026, CG-DL-E-01072026-273957. File No. S-35025/04/2026-SS-II. Download the English text from egazette.gov.in (G.S.R. 525(E) PDF).
Membership. Paragraph 2(f) of the 2026 Scheme defines an excluded employee as a person whose wage, at the time the person is otherwise entitled to become a member, exceeds the wage ceiling prescribed under the Code. A new joiner at or below the ceiling is a member. A new joiner above the ceiling is excluded unless the Scheme's voluntary-contribution route is used.
Contribution rate. Paragraph 18: employer 12% of wages, employee an equal 12%. A notified class of establishments pays 10%. Contributions are limited to the notified wage ceiling unless higher wages are paid under paragraph 19 (voluntary) or under a permitted higher-pension case.
Wages, not a stripped basic. Section 2(88) of the Code defines wages as basic pay, dearness allowance and retaining allowance, and then excludes listed items such as bonus, house-rent allowance, overtime and commission. The first proviso adds back any excess if those excluded payments go above one-half of all remuneration. In plain words: if allowances are more than 50% of pay, the extra is treated as wages. The Supreme Court had already applied a universality test to “basic wages” under the old Act in Regional Provident Fund Commissioner (II) West Bengal v. Vivekananda Vidyamandir (28 February 2019). Universal allowances paid to all in a category were treated as basic wages. The Code now writes a 50% floor into the statute.
RTI. EPFO is a public authority under section 2(h) of the RTI Act, 2005. You can ask for existing records: the wage-ceiling notification, your service and wage history, the Electronic Challan-cum-Return (ECR) for named months, a claim scrutiny sheet, and the reason a claim was rejected. You cannot use RTI to order EPFO to pay a claim. For drafting, use the AI RTI Drafter.
Use this as a first screen. Your establishment must already be covered under Chapter III of the Code.
| Your facts | What the ceiling change does |
|---|---|
| New joiner, wages ≤ ₹25,000 | Mandatory member of EPF, EPS and EDLI |
| New joiner, wages > ₹25,000 | Excluded employee unless you opt to contribute on higher wages |
| Already a member, wages later crossed ₹15,000 | You stay a member. The statutory contribution cap follows the new ceiling unless you already contribute on higher wages |
| Joined earlier above ₹15,000 and were never enrolled | If current wages are ≤ ₹25,000, the employer should now enrol you. Ask HR for the UAN and the first ECR |
| Already contributing 12% on actual wages above ₹25,000 | The statutory floor rises; your extra amount remains a voluntary contribution that you or the employer can reduce or stop |
| International worker | Separate rules in paragraphs 2 and 51. Social-security agreements and detached-worker status still matter |
“Wages” here is the Code definition, not CTC and not a private “basic” that an employer invented to stay under the old cap.
Rates did not change. The base did.
On a wage equal to the new ceiling of ₹25,000:
| Share | Rate | Amount on ₹25,000 | Where it goes |
|---|---|---|---|
| Employee | 12% | ₹3,000 | EPF account |
| Employer | 12% | ₹3,000 | split below |
| Of the employer 12%, EPS | 8.33% of the ceiling | ₹2,082.50 | Employees' Pension Scheme |
| Of the employer 12%, EPF | remainder, 3.67% | ₹917.50 | EPF account |
| EDLI | employer, under the insurance scheme | as notified in the EDLI Scheme, 2026 | death-linked insurance, no employee share |
Compare that with the old ceiling of ₹15,000: employee ₹1,800, employer ₹1,800, EPS about ₹1,250.
If your wages are ₹22,000, the statutory 12% is on ₹22,000, not on ₹25,000. If your wages are ₹40,000, the statutory 12% is on ₹25,000 unless you use paragraph 19 voluntary contributions.
Take-home. A member moving from a ₹15,000 statutory base to a ₹25,000 base sees employee PF rise by ₹1,200 a month. The employer cost also rises by ₹1,200 a month on that extra ₹10,000, plus any EDLI and administrative charges that apply.
Voluntary extra PF. Paragraph 19 is clear:
Do not assume that raising your VPF automatically raises the employer's 12%.
Due date. Paragraph 20: the employer pays both shares, plus charges, within 15 days of the close of every month. For contract workers in an establishment that is not independently registered, the principal employer remains responsible with the contractor.
Paragraph 46 rebuilt partial withdrawals. The old Scheme, 1952 used many purpose-specific paragraphs. The 2026 Scheme groups the same needs into three buckets, then applies one minimum-balance rule.
Minimum balance. After any partial withdrawal, the member's account must still hold 25% of the aggregate of employee share + employer share + interest up to that date. The amount you can actually take is the Eligible Member Balance: current credit minus that 25%. The smallest partial withdrawal is ₹1,000.
Twelve months' membership. For the listed purposes, you generally need 12 months' total membership of the Fund. Paragraph 47 counts earlier service in the same establishment, earlier Fund membership, and certain exempt-trust periods, if you did not already close the account.
If you leave before 12 months. Paragraph 46(5) still lets you take a partial withdrawal, but not more than the Eligible Member Balance on that date.
| Purpose (para 46) | How much of the Eligible Member Balance | Extra limit |
|---|---|---|
| Illness of self or family | up to 100% | after 12 months' membership |
| Education of self or family | up to 100% | up to 10 times during membership |
| Marriage of self or family | up to 100% | up to 5 times during membership |
| Housing: buy house or flat, buy a site, build, repay a home loan, renovate | up to 100% | up to 5 times during membership |
| Special circumstances | up to 100% | up to 2 times in a financial year |
Full settlement is a different paragraph. Paragraph 49 lets you withdraw the full credit:
In other cases of leaving a covered job, paragraph 49(2) allows full withdrawal only after you have not been employed in any factory or establishment to which the Code applies for a continuous 12 months. That waiting period does not apply to a female member who resigns in order to get married.
Worked numbers, not a reported case: a member with ₹4,00,000 in the Fund has a 25% floor of ₹1,00,000. The Eligible Member Balance is ₹3,00,000. An illness or housing claim after 12 months' membership can take up to ₹3,00,000. The remaining ₹1,00,000 stays until a paragraph 49 full-settlement event.
File the claim on the member portal or UMANG after UAN, Aadhaar, PAN and bank KYC are live. Never pay a private “agent” to unlock PF. If money left the account without your consent, follow EPFO PF withdrawal fraud recovery.
For the paragraph-level withdrawal map, see the companion page EPF withdrawal rules 2026, what is official.
Step-by-step balance and claim tracking is on how to check EPF balance and claim status. Activate a silent UAN with UAN activation 2026.
Interest for 2025-26 was recommended at 8.25% by the Central Board of Trustees. A recommendation is not a credit. Track the government notification on EPF interest 2025-26.
TDS on a premature withdrawal (generally before 5 years' continuous service, above ₹50,000) is under Income-tax Act section 192A. Rate 10% with PAN on record; a much higher rate without PAN. Transfers are not withdrawals. See TDS on PF withdrawal, section 192A.
EPS. Part of the employer's 12% is diverted at 8.33% of the wage ceiling into the pension fund. On a full ₹25,000 ceiling that diversion is ₹2,082.50 a month, up from about ₹1,250. Your monthly pension still depends on pensionable service and pensionable salary under the Employees' Pension Scheme, 2026. A higher ceiling raises the pensionable-wage cap for new service after the change. It does not, by itself, rewrite past service.
Higher pension on actual wages is a separate option with arrears. It shrinks the EPF lump sum. Read EPS higher pension: status and whether to opt before you sign anything.
EDLI. Membership of EPF brings deposit-linked life insurance under the EDLI Scheme, 2026. There is no employee contribution. The benefit formula and any rupee cap are in that scheme. Do not rely on an old “₹7 lakh” headline. Read the current EDLI paragraph on epfindia.gov.in at the time you need the figure.
Nomination. Paragraph 44 requires an e-nomination. A nomination made before marriage becomes invalid on marriage; file a fresh one. A nominee who is a minor needs a guardian named in the nomination.
VISHWAS, 2026 is a time-bound damages/penalty settlement window notified as part of G.S.R. 525(E). PIB Release ID 2285666 (17 July 2026) says it opened on 29 June 2026 for six months. Employers apply on the employer portal with DSC or e-Sign, after paying the full statutory interest. Fraud and already-recovered damages are excluded. Confirm on the live EPFO employer portal whether the window is still open before you file.
The Annexure to the 2026 Scheme also contains the Employees' Enrolment Campaign, 2026 and an amnesty track for exempted trusts. Those are employer-side regularisation tools, not member withdrawal shortcuts.
Worked example, not a named case. A covered private establishment in Pune hires a staff member on 18 September 2026 on wages of ₹22,000 a month (basic + DA, already at least 50% of gross).
Total extra statutory outgo versus the old ₹15,000 cap, for this one person: employee ₹840 more a month; employer ₹840 more a month, before EDLI and admin charges.
File this with the Central Public Information Officer of the EPFO regional office that holds the last contributing establishment, with a copy to the CPIO, EPFO Head Office, Bhavishya Nidhi Bhawan, 14 Bhikaiji Cama Place, New Delhi 110066, if the file may have moved. Fee: ₹10 under the RTI Rules applicable to the public authority. Do not paste Aadhaar, bank account or UAN into a public web form; put identifiers only on the signed application that EPFO receives.
To The Central Public Information Officer Employees' Provident Fund Organisation [Regional Office name and full postal address] Subject: Request under section 6(1) of the Right to Information Act, 2005 for records of PF membership, contributions and claim [ID if any] Sir/Madam, Please provide the following information under section 6(1). If any part is held by another public authority, transfer that part under section 6(3). If any part is exempt, sever it under section 10 and release the rest with the section 8 or 9 clause relied on. 1. Copy of the notification issued under section 2(89) of the Code on Social Security, 2020 that is currently applied by this office as the wage ceiling for Chapter III, with the date it was taken on record in this office. 2. Copy of the member master, date of joining, date of exit if any, and month-wise wages and contributions (employee share, employer share, EPS diversion) for UAN [state on the signed paper] for wage months [from] to [to]. 3. Copy of the Electronic Challan-cum-Returns filed by establishment ID [state] for those months, and the credit date into the member account. 4. If a claim was filed: copy of the claim form as received, the scrutiny sheet, the deficiency memo if any, the rejection or settlement order, and the name and designation of the dealing assistant and the approving officer. 5. Copy of any EPFiGMS grievance record for registration number [state], including the action-taken note. I request the decision within 30 days under section 7(1). The application fee of ₹10 is enclosed. Yours faithfully [Name] [Postal address] [Date]
If the PIO is silent or evasive, file a first appeal under section 19(1) within 30 days. The RTI Playbook explains that appeal in full.
₹25,000 a month for mandatory coverage, up from ₹15,000. The Union Cabinet approved the hike on 16 September 2026. The Labour Minister announced the effective date as 17 September 2026. Watch the section 2(89) gazette that replaces S.O. 2702(E).
A fresh employee in a covered establishment whose wages are up to ₹25,000 a month. People already in the Fund stay in the Fund. A new joiner above ₹25,000 is an excluded employee unless voluntary contributions are made.
No. Paragraph 18 of the EPF Scheme, 2026 keeps 12% from the employee and 12% from the employer. A notified class of establishments pays 10%. What changed is the wage base and, from 17 September 2026, the ceiling used for mandatory coverage.
8.33% of the ceiling. On a full ₹25,000 wage that is ₹2,082.50 a month, diverted from the employer's 12%. On the old ₹15,000 ceiling it was about ₹1,250. Your actual pension still depends on service and pensionable salary under the EPS, 2026.
Yes. G.S.R. 525(E) dated 29 June 2026, published in the Gazette of India Extraordinary. It supersedes the EPF Scheme, 1952, except as to things already done. PIB also records that VISHWAS, 2026 was notified in that same G.S.R.
Not as a general rule. Paragraph 46 partial withdrawals leave a 25% minimum balance. You can take up to 100% of the Eligible Member Balance (the other 75%) for illness, education, marriage, housing or special circumstances, after the membership and frequency limits.
Paragraph 49(2): a continuous 12 months of not being employed in a Code-covered establishment, unless a paragraph 49(1) event applies (retirement at 55, total incapacity, emigration, retrenchment, VRS). A female member who resigns to get married is not held to that 12-month wait.
No. Paragraph 19(2) says the employer may match and is under no obligation to match. You or the employer may reduce or stop the extra amount at any time.
Section 2(88) of the Code on Social Security, 2020. If excluded payments (HRA, overtime, bonus and the other listed items) exceed one-half of all remuneration, the excess is added back into wages. That stops a CTC split that leaves basic pay artificially low.
File EPFiGMS for action on the claim. File RTI for the record: scrutiny sheet, deficiency, ECR, and the officer who sat on the file. Use both if the grievance is ignored. Do not put Aadhaar or OTPs in the RTI text.
Last reviewed: 17 September 2026.