What changed
The PF wage ceiling is the monthly wage up to which PF is compulsory and on which the Employees' Pension Scheme (EPS) contribution is worked out. It had been ₹15,000 since September 2014. It is now ₹25,000 for wage months from 17 September 2026.
| Before 17 Sep 2026 | From 17 Sep 2026 | |
|---|---|---|
| Wage ceiling | ₹15,000 | ₹25,000 |
| Employee contribution | 12% of PF wages | 12% of PF wages |
| Employer contribution | 12% (EPS 8.33% on wages up to the ceiling, rest to EPF) | 12% (EPS 8.33% on wages up to the ceiling, rest to EPF) |
| Most EPS a month | ₹1,250 | ₹2,083 |
Worked example: PF wages of ₹30,000, contribution on the ceiling
| Per month | Ceiling ₹15,000 | Ceiling ₹25,000 |
|---|---|---|
| Employee PF (12%) | ₹1,800 | ₹3,000 |
| Employer EPS (8.33%) | ₹1,250 | ₹2,083 |
| Employer EPF (rest of 12%) | ₹550 | ₹917 |
| Change in take-home pay | No change | ₹1,200 less |
Employees whose PF is worked out on actual wages (not capped) see no change in the employee share; only the EPS part of the employer share moves, because EPS is always on wages up to the ceiling.
Which employees are affected
- PF wages between ₹15,000 and ₹25,000: contributions now go up to their full wages.
- PF wages above ₹25,000, contribution on the ceiling: contributions rise to 12% of ₹25,000.
- PF wages up to ₹15,000: no change.
- New joiners with wages up to ₹25,000: PF membership is compulsory for them.
What to do in payroll
- Make sure the month in which 17 September 2026 falls is handled as the notification requires, and later months use ₹25,000.
- Recheck CTC structures where employer PF is part of CTC: a higher employer contribution means a lower gross for the same CTC.
- Tell employees in advance that take-home pay will change and why. Their PF savings go up.
- Check the ECR file: EPS wages will now be up to ₹25,000.
How HR Bingo handles it
Statutory rates in HR Bingo are kept with the date they take effect. The ₹25,000 ceiling is already in the table, so payroll for every month from the change uses it automatically, while earlier months keep ₹15,000. Your team does not need to update anything.
Sources
Frequently asked questions
From when does the ₹25,000 PF wage ceiling apply?
From 17 September 2026, as notified (S.O. 5109(E)).
Does the employee PF rate change?
No. The rate stays 12% of PF wages for both the employee and the employer. What changes is the wage on which contributions are capped and on which EPS is worked out.
Will take-home pay go down?
For employees with PF wages above ₹15,000 whose PF is capped at the ceiling, yes: by up to ₹1,200 a month (12% of the extra ₹10,000). That money goes into their PF.