The Ministry of Labour & Employment has announced an enhancement of the statutory wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from ₹15,000 to ₹25,000 per month, effective September 17, 2026.
The following has been stated:
Employees covered under EPF will contribute on the enhanced wage ceiling, resulting in higher EPF contributions and eligibility for a higher pension for themselves and their family members.
The increased employee contribution will be credited to the EPF account, earning interest at 8.25% for the current financial year. Employees may withdraw up to 75% of the contribution immediately through an online claim, subject to applicable requirements. Claims up to ₹5,00,000 are stated to be auto-settled within 3 days through the CITES technology platform.
Employers will also be required to make higher EPF contributions based on the revised ₹25,000 wage ceiling.
The additional financial burden on employers may be offset by incentives of up to ₹3,000 per month under the PMVBRY Scheme, subject to Aadhaar and other KYC requirements of employees. The incentive is available for up to 2 years for the non-manufacturing sector and 4 years for the manufacturing sector for job creation.
[No. MH/THS-GKP/RC-I Sectt/]
