EPFO Wage Ceiling Increased to ₹25,000

The statutory wage ceiling for EPF coverage has been increased from ₹15,000 to ₹25,000 per month, effective 17 September 2026.

This change impacts EPF coverage and the calculation of statutory PF contributions for eligible employees.

Who is impacted?

• Employees with PF wages between ₹15,000 and ₹25,000 per month who were previously outside mandatory coverage may now become eligible for mandatory EPF coverage, subject to applicable rules.
• Existing PF members whose contributions are restricted to the statutory ceiling may see their employee PF contribution increase based on the revised ceiling and applicable PF wages.
• Employer contributions towards EPF, EPS, and EDLI may also increase where contributions are calculated using the statutory ceiling.

How does the revised wage ceiling impact employees?

The impact depends on the employee's PF wages and the PF contribution configuration. The following examples illustrate the impact when PF is calculated at 12% of applicable PF wages.

Example:

• PF wages of ₹15,000: ₹15,000 × 12% = ₹1,800
• PF wages of ₹20,000: ₹20,000 × 12% = ₹2,400
• PF wages of ₹25,000: ₹25,000 × 12% = ₹3,000

Note: The above examples assume PF is calculated at 12% of the applicable PF wages. Actual PF contribution may vary based on the employee's PF configuration, salary structure, and applicable statutory provisions.

What does this mean in Keka Payroll?

Keka Payroll will use the revised ₹25,000 statutory wage ceiling for applicable PF calculations from September 2026 onwards.

Go to:

Payroll > Setting > Select Pay Group > Contributions > Provident Fund (PF) Settings

If Yes, Employee PF amount to statutory minimum is enabled, the PF contribution will be calculated based on the applicable PF wages, subject to the revised statutory ceiling of ₹25,000. The maximum employee PF contribution at the ceiling is ₹3,000 (12% of ₹25,000), where applicable.

If this option is set to No, PF will continue to be calculated based on the expression configured in the employee's salary structure.

For example, if an employee's Basic salary is ₹40,000 and PF is configured as 12% of Basic, the PF contribution will be calculated as:

₹40,000 × 12% = ₹4,800

In this case, PF is calculated based on the salary structure expression and is not restricted to the ₹25,000 statutory ceiling.

What happens to PF reports and calculations?

The revised wage ceiling will be considered applicable to:

• PF calculations
• PF contribution components
• EPS and EDLI calculations
• PF ECR
• Related PF reports

The revised ceiling will also be considered in applicable statutory PF calculations and reports going forward.

Employers should review their PF configuration and identify employees who may be impacted by the revised wage ceiling.

Official Release

For more information, refer to the official release from the Government of India (GOI): Link