The Ministry of Labour & Employment has issued a notification dated September 17, 2026, notifying INR 25,000 per month as the new wage ceiling for the purposes of the provident fund (“PF”) provisions of the Code on Social Security, 2020 (“SS Code”). The notification is effective from September 17, 2026. The wage ceiling was last revised 12 years ago in September 2014, when it was increased from INR 6,500 per month to INR 15,000 per month.

The enhanced wage ceiling extends the mandatory Employees’ Provident Fund Organisation (“EPFO”) linked social security coverage to employees earning between INR 15,000 and INR 25,000 per month who were previously outside the mandatory coverage threshold.
We have summarized the key aspects below:

• Employees earning wages up to INR 25,000 per month will, subject to the applicable coverage conditions under the provident fund provisions of the SS Code, be brought within the mandatory provident fund framework.

• Such employees will be entitled to benefits under (i) the Employees’ Provident Fund Scheme (EPF Scheme); (ii) the Employees’ Pension Scheme; and (iii) the Employees’ Deposit Linked Insurance Scheme, subject to applicable eligibility requirements under the respective schemes.

• The standard rate of contribution remains 12% of wages for each of the employer and the employee.

• Accordingly, for employees who become mandatorily covered as a result of the revised wage ceiling, employers will need to assess the corresponding impact on payroll and statutory contributions with effect from September 17, 2026.

• The revision in the wage ceiling does not affect existing EPF Scheme members who already draw wages above the ceiling and are voluntarily enrolled under the EPF Scheme.