What changed
The notification is issued under Section 2(89) of the Code on Social Security, 2020, which defines the wage ceiling, and applies for the purposes of Chapter III of the Code, which covers the EPF, pension (EPS) and deposit-linked insurance (EDLI) schemes. It supersedes S.O. 2702(E) of 29 May 2026, which had notified ₹15,000, and takes effect from its publication in the Gazette on 17 September 2026. The ₹15,000 ceiling had applied since September 2014.
Contributions stay at 12% of wages from the employee and 12% from the employer. Of the employer’s share, 8.33% of wages up to the ceiling goes to EPS, now up to ₹2,083 a month, and the balance to EPF. At the ceiling, the employee and the employer each contribute ₹3,000 a month. The EPF administration charge stays at 0.5% of EPF wages, with a minimum of ₹500 a month per establishment.
Employees with wages between ₹15,001 and ₹25,000 who were outside mandatory coverage now come within it; the Government estimates more than 51 lakh additional workers. Because the new ceiling takes effect from 17 September 2026, the September 2026 wage month straddles both ceilings; follow EPFO’s ECR instructions on epfindia.gov.in for how to report it.
The EDLI contribution, payable by the employer alone, stays at 0.5% of wages up to the ceiling, so it rises to a maximum of ₹125 a month per employee. Members earning above ₹25,000 can still contribute on higher wages by agreement, but the employer’s EPS share remains capped at 8.33% of ₹25,000. Monthly contributions continue to be paid through the electronic challan-cum-return (ECR) by the 15th of the following month.
Who is affected
Establishments covered by EPF, and employees whose monthly wages are between ₹15,000 and ₹25,000.
Effective dates
| Item | Date or period |
|---|---|
| Notification published | 17 September 2026 |
| New ceiling applies | From 17 September 2026 |
| First return on the new ceiling | ECR for September 2026, due 15 October 2026 |
What to do now
- List employees with monthly EPF wages between ₹15,001 and ₹25,000 and enrol those who are not yet members.
- Update payroll for the EPS cap of ₹2,083 and the higher employer cost.
- Check how “wages” is worked out, since the Labour Codes add back excluded allowances above 50% of total pay.
- Revise CTC statements and offer letters for staff near the ceiling.
Penalty or consequence if missed
Contributions paid after the 15th carry interest at 12% a year and damages for the period of delay under Paragraph 32A of the EPF Scheme. A Gazette notification of 14 June 2024 rationalised damages to 1% a month of the arrears (PIB, 237th CBT meeting), and the rate table has since been revised for short delays, so take the current table from epfindia.gov.in before computing. An employee who is not enrolled when covered can claim contributions for the whole period, and the employer then bears both shares with interest. Deducting the employee share and not depositing it is a separate, more serious offence.
Official source
Effective: 17 Sep 2026 · Note published · Last reviewed
Related on this site
This note summarises a public notification for general information. It is not professional advice and does not cover every condition or exception, and the rule can change again by a later notification. Read the notification itself before acting on it, or consult a qualified professional on your own facts.