Skip to content

₹25,000 PF Wage Ceiling: Employer Payroll Checklist

By Kusum · Reviewed by Harish, Labour Consultant, Delhi on · Updated

Share:WhatsAppFacebookXTelegramLinkedIn
All guides ↓

Independent guide by India Customer Care. We are not EPFO. Use only the official EPFO portals and the UMANG app for your account, and never share your password or OTP with anyone.

On this page
  1. Checklist
  2. The September 2026 ECR
  3. Calculator: cost per employee from October 2026
  4. CTC and salary restructuring
  5. Offsetting the cost
  6. Sources

From 17 September 2026 (S.O. 5109(E)), every employee whose PF wage is up to ₹25,000 must be in EPF, EPS and EDLI. Enrol newly covered employees, move EPF-only members into EPS, recalculate contributions on wages up to ₹25,000, and report September in one ECR split at 16/17 September. EPFO has confirmed there is no postponement.

Checklist

  1. Identify employees with PF wages of ₹15,001 to ₹25,000. PF wages are basic + DA + retaining allowance under section 2(88) of the Code, not gross salary or CTC.
  2. Excluded employees in that band (working on 17 Sep 2026): make them members of EPF, EPS and EDLI from 17 Sep 2026. They need a UAN through face authentication on UMANG.
  3. EPF members not in EPS with wages in the band: make them EPS members from 17 Sep 2026.
  4. Members contributing on ₹15,000: contributions now run on PF wages up to ₹25,000.
  5. Employees above ₹25,000: contributions are normally capped at ₹25,000; don't reduce existing higher-wage arrangements.
  6. Contract labour: make sure contractors apply the new ceiling.
  7. Update payroll and payslips and tell employees before the next salary.
  8. Keep an audit trail of calculations and changes.

The September 2026 ECR

File one ECR for September 2026 with contributions worked out for two periods: 1 to 16 September at the ₹15,000 ceiling and 17 to 30 September at ₹25,000. It was due by 15 October 2026. Where you could not deduct a newly covered employee's share from September salary, EPFO allows recovery from the next payroll without prior approval, but the full September amount (employee and employer) still had to be paid on time.

EPFO example: wage ₹20,000A: newly covered from 17 SepB: EPF member, newly in EPSC: member on ₹15,000 cap
EPF wage for September₹9,333.33₹20,000.00₹17,333.33
EPS wage for September₹9,333.33₹9,333.33₹17,333.33
Employee share (12%)₹1,120.00₹2,400.00₹2,080.00
Employer EPF (A/c 1)₹342.53₹1,622.53₹636.13
Employer EPS (A/c 10)₹777.47₹777.47₹1,443.87
EDLI (A/c 21, 0.5%)₹46.67₹100.00₹86.67
Admin (A/c 2, 0.5%)₹46.67₹100.00₹86.67
Total₹2,333.34₹5,000.00₹4,333.34

Calculator: cost per employee from October 2026

Monthly PF for one employee

Is the employee an EPS member?

CTC and salary restructuring

EPFO's FAQ is clear that CTC is not a statutory concept for PF. The employer's contribution cannot be turned into an employee deduction by describing it as part of CTC, and statutory wages must not be reduced contrary to law. If you restructure pay, take advice on the Code's wage definition first.

Offsetting the cost

EPFO points to the PMVBRY incentive of up to ₹3,000 a month for each additional job created, subject to that scheme's conditions. The Government's own EPS contribution stays at 1.16% of wages up to ₹15,000.

Sources