GENERAL18 Sept 2026
What does the latest revision to the EPFO wage ceiling entail? | Explained
On 16 September 2026, the Union Cabinet raised the monthly wage ceiling for mandatory Employees' Provident Fund Organisation (EPFO) cover to ₹25,000 from ₹15,000, the first hike since 2014. Over 51 lakh more employees come under EPFO, with about one crore possibly added. Employers now pay ₹600 more per employee, and the pension contribution rises to ₹2,082.5. Review your payslip and staff costs.
Key Statutory Highlights
- The Union Cabinet approved raising the EPFO wage ceiling to ₹25,000 a month from ₹15,000, and the last increase was in September 2014.
- The Government expects more than 51 lakh additional employees to come within mandatory EPFO coverage.
- Employers' Provident Fund contribution will rise by ₹600 per employee and the Employees' Pension Scheme contribution will go up to ₹2,082.5 a month from ₹1,250.
Actionable Advice for Taxpayers / Founders:If you run a business, recheck your payroll and EPFO contribution workings against the new ₹25,000 ceiling and budget for the higher employer share. Please confirm how it applies to your specific staff with a CA.
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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