INCOME TAX16 Sept 2026
Govt hikes wage ceiling for EPF coverage: We calculate how this could impact your pension payout at retirement | Mint
The government has raised the Employees' Provident Fund wage ceiling from ₹15,000 to ₹25,000 a month, after 12 years. This brings 51 lakh more employees under mandatory cover. It matters because pension is based on your last five years' average salary, capped at this ceiling. A higher ceiling can mean a bigger pension, but only if you stay covered for five years or more.
Key Statutory Highlights
- The wage ceiling for EPF membership has been raised to ₹25,000 per month, up from the ₹15,000 set in 2014.
- This change brings an additional 51 lakh employees under mandatory provident fund cover, widening social security coverage.
- Pension is calculated as pensionable salary, the average of the last 60 months, multiplied by pensionable service and divided by 70.
Actionable Advice for Taxpayers / Founders:Check your payslip and EPF records to see whether you are now under mandatory cover, and if your salary sits near the new ceiling, ask your payroll team or a tax professional how it may affect your retirement corpus.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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