The EPF wage ceiling has gone up from ₹15,000 to ₹25,000 a month, from 17 September 2026. The Labour Ministry notified the change on 17 September 2026 (S.O. 5109(E)), the first increase since September 2014. The government expects more than 51 lakh more employees to come under mandatory EPF, pension (EPS) and insurance (EDLI) cover.
If PF is deducted from your salary, or might be soon, this guide covers what changed, how PF works, how to check your balance, and how to withdraw it under the 2026 rules.
What Is PF and Why Was It Introduced?
The Employees’ Provident Fund (EPF) is a retirement savings scheme that the government requires for salaried workers. Every month you and your employer each put in a fixed share of your pay. The money earns interest that the government declares each year, and it builds into a fund for retirement.
It started with the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. After Independence, most industrial workers had no social security. When they retired, lost their job or died, their families often had nothing to fall back on. The Act made saving compulsory and made employers contribute too. The Employees’ Provident Fund Organisation (EPFO), under the Ministry of Labour & Employment, runs the scheme.
The Employees’ Pension Scheme (EPS) was added in 1995 and the Employees’ Deposit Linked Insurance (EDLI) scheme in 1976. The rules are now being moved under the Code on Social Security, 2020, and the new EPF Scheme, 2026 replaced the 1952 scheme from 29 June 2026.
The New EPF Wage Ceiling: Raised to ₹25,000
The Union Cabinet approved the change, and the Labour Ministry notified it through Notification S.O. 5109(E) dated 17 September 2026. The statutory wage ceiling went from ₹15,000 to ₹25,000 per month, effective 17 September 2026 (Vishwakarma Jayanti).
What this means for you
- More people are covered: If your PF wages are between ₹15,001 and ₹25,000, you must now be enrolled in EPF, EPS and EDLI. You don’t need to apply; your employer has to enrol you.
- Coverage depends on PF wages, not gross salary: PF wages usually mean basic pay plus DA, as defined in Section 2(88) of the Code on Social Security. EPFO’s FAQs give this example: someone with a ₹50,000 gross salary and ₹25,000 PF wages must be covered. Someone with ₹30,000 PF wages falls outside mandatory cover but can join voluntarily if the employer agrees. EPS is not available to them.
- Higher pension contribution: EPS is 8.33% of wages up to ₹25,000, so the maximum is ₹2,083 a month. Under the old ceiling it was ₹1,250.
- Existing members are not affected: Contributions already paid at the old ceiling stay as they are. If you already contribute on higher wages, you can keep doing so.
- September 2026 is split in two: Employers calculate 1–16 September on the ₹15,000 ceiling and 17–30 September on ₹25,000, then file a single ECR for the month, normally due by 15 October 2026.
History: How PF Has Changed Over the Years
Wage ceiling over time
| Period | Monthly wage ceiling |
|---|---|
| June 2001 – August 2014 | ₹6,500 |
| 1 September 2014 – 16 September 2026 | ₹15,000 |
| From 17 September 2026 | ₹25,000 |
The ceiling stayed at ₹15,000 for 12 years while salaries, minimum wages and living costs rose. As a result, many entry-level workers earning just above ₹15,000 were not automatically covered. The new limit closes that gap.
Contribution rate
When the scheme began, contributions were a smaller share of wages. The rate has been raised in steps since then. Today the standard rate is 12% of basic + DA from both the employee and the employer. A reduced 10% rate applies to some notified establishments and smaller units.
EPF interest rate in recent years
| Financial year | EPF interest rate |
|---|---|
| 2018-19 | 8.65% |
| 2019-20 | 8.50% |
| 2020-21 | 8.50% |
| 2021-22 | 8.10% |
| 2022-23 | 8.15% |
| 2023-24 | 8.25% |
| 2024-25 | 8.25% |
| 2025-26 | 8.25% |
The Central Board of Trustees (CBT) recommended 8.25% for FY 2025-26 at its 239th meeting on 2 March 2026. The Finance Ministry then approved the rate, and EPFO credited the FY 2025-26 interest to about 34 crore accounts on 15 July 2026. Note: CBT only recommends a rate; it applies after government approval. Rates for FY 2026-27 have not been declared yet.
How PF Works
Employee vs employer split
You put in 12% of basic + DA, and all of it goes to your EPF account. Your employer also puts in 12%, but that is split between schemes:
| Component | Share of PF wages | Where it goes |
|---|---|---|
| Employee contribution | 12% | EPF (fully) |
| Employer – EPS | 8.33% (max ₹2,083/month on ₹25,000) | Pension fund |
| Employer – EPF | Remaining (12% − EPS share) | Your EPF account |
| Employer – EDLI | Small separate charge | Life insurance cover |
EPF vs EPS
EPF is a lump-sum savings account that earns interest every year. EPS pays a monthly pension after you reach 58, provided you have at least 10 years of service. The EPS portion does not earn interest in your account. Your pension is calculated with a formula based on your pensionable salary and years of service.
UAN: your PF identity
The Universal Account Number (UAN) is a 12-digit number that stays with you for your whole career. Every new employer adds a new Member ID under the same UAN. Link your Aadhaar, PAN and bank account to your UAN (this is called KYC). Most online services depend on it.
Platforms to Access Your PF
| Platform | What you can do |
|---|---|
| EPFO Member Portal (unifiedportal-mem.epfindia.gov.in) | Activate UAN, KYC, file claims, transfer PF, nominate |
| Member Passbook portal | View month-wise contributions and interest |
| UMANG app | Passbook, claims, claim tracking, UAN activation on mobile |
| Missed call: 9966044425 | Balance and last contribution by SMS (from your UAN-registered mobile) |
| SMS: “EPFOHO UAN ENG” to 7738299899 | Balance details by SMS |
Quick steps to get started
- Get your UAN from your payslip or HR.
- Activate it on the Member Portal using your Aadhaar-linked mobile OTP.
- Check that your name, date of birth, Aadhaar, PAN and bank details are correct and verified.
- Add an e-nomination.
- Check your passbook every few months to make sure your employer is depositing contributions.
PF Withdrawal Rules (EPF Scheme, 2026)
The CBT approved simpler withdrawal rules in October 2025. As reported, they were carried into the EPF Scheme, 2026, notified under the Code on Social Security and effective 29 June 2026. Check the current rules on the EPFO portal before you file a claim, as operational details can change. The main points:
Partial withdrawal (advance)
- The old 13 withdrawal types are now 3 categories: Essential Needs (illness, education, marriage), Housing Needs, and Special Circumstances.
- 12 months of service is enough for every category. Earlier, some needed up to 7 years.
- You must keep 25% of contributions as a minimum balance. You can withdraw up to 100% of the eligible balance (contributions above the 25% you must keep), which now includes the employer’s share. Example: with ₹1 lakh, ₹25,000 stays and up to ₹75,000 is available.
- Education withdrawals are allowed up to 10 times and marriage up to 5 times.
- Special Circumstances claims don’t need a reason.
Full / final settlement
- If you lose your job, you can withdraw 75% right away and the remaining 25% after 12 months of unemployment. Earlier it was 2 months.
- EPS pension withdrawal is allowed after 36 months of unemployment.
- You can withdraw the full balance on retirement at 55 or later, permanent disability, retrenchment, VRS, or leaving India permanently.
Tax rules at a glance
- Withdrawals after 5 years of continuous service are tax-free. Service with earlier employers counts if you transferred your PF.
- If you withdraw before 5 years, the amount is taxable. TDS (usually 10% with PAN) applies when it is ₹50,000 or more. Submit Form 15G/15H if you qualify, and link your PAN to avoid a higher TDS rate.
- Interest earned on your own contributions above ₹2.5 lakh a year is taxable (₹5 lakh if your employer does not contribute, as in some government funds).
How to file an online claim
- Log in to the Member Portal or UMANG with your UAN.
- Go to Online Services → Claim (Form-31, 19, 10C & 10D).
- Verify your bank account and choose the type of withdrawal.
- Give your purpose and amount, then confirm with the Aadhaar OTP.
- Track the claim status on the portal or app. Many smaller advance claims are settled automatically; others need manual approval.
Worked Example (Illustrative): What Changes on Your Payslip
Take Riya, a fresher in Pune earning a ₹40,000 gross salary with ₹22,000 basic + DA. Under the old ₹15,000 ceiling, she joined above the limit and was not mandatorily covered. From 17 September 2026, she must be.
| Item | Monthly amount |
|---|---|
| Employee EPF (12% of ₹22,000) | ₹2,640 |
| Employer EPS (8.33% of ₹22,000) | ₹1,833 |
| Employer EPF (₹2,640 − ₹1,833) | ₹807 |
| Total into EPF account | ₹3,447 |
Her take-home pay drops by ₹2,640. In return, she gets about ₹41,000 a year of retirement savings at 8.25% (before interest), a pension and life insurance cover. (Figures are rounded and only illustrate the method; your employer’s CTC structure may differ.)
Glossary: Key PF Terms
- PF wages: basic pay + DA (and certain allowances under the Code on Social Security), used to calculate contributions. Not your gross or CTC.
- Wage ceiling: the PF-wage limit up to which coverage is mandatory and EPS is calculated. Now ₹25,000 a month.
- EPF / EPS / EDLI: savings fund, pension scheme and linked life insurance, all run by EPFO.
- UAN: your permanent 12-digit PF number across jobs.
- ECR: the monthly challan-cum-return your employer files with EPFO.
- CBT: EPFO’s Central Board of Trustees, which recommends the yearly interest rate.
FAQs
Is the ₹25,000 limit based on gross salary?
No. It is based on PF wages (mainly basic + DA), not gross or CTC.
Do I need to apply to join EPF?
No. If your PF wages are ₹25,000 or less, your employer must enrol you.
Will my contribution automatically be calculated on ₹25,000?
No. If your PF wages are below ₹25,000, contributions are based on your actual wages.
What is the current EPF interest rate?
8.25% for FY 2025-26 (approved and credited), the same as the previous two years. The FY 2026-27 rate is not yet declared.
How much PF can I withdraw now?
Up to 100% of the eligible balance after keeping the 25% minimum, once you have 12 months of service. That works out to roughly 75% of your corpus.
How do I check my PF balance without the internet?
Give a missed call to 9966044425 from your registered mobile, or send an SMS to 7738299899.
Conclusion
Raising the ceiling to ₹25,000 is the biggest change to EPF coverage in more than a decade. Together with simpler withdrawals and an 8.25% rate for FY 2025-26, it makes PF a stronger part of a salaried worker’s finances. Activate your UAN, complete KYC, check your passbook, and ask HR whether the new ceiling applies to you.
Disclaimer: This article is for general information only and reflects rules as of 8 November 2026. It is not legal, tax or financial advice. Check current details on the EPFO website, with your employer, or with a tax advisor before you make decisions.
Sources
- PIB – EPFO wage ceiling enhanced to ₹25,000
- PIB – Over 51 lakh additional employees; EPS max ₹2,083
- EY Alert – EPFO FAQs on wage ceiling (S.O. 5109(E))
- Deloitte Tax Alert – EPFO FAQs
- PIB – CBT recommends 8.25% for FY 2025-26
- The Hindu – Interest credited to 34 crore accounts
- PIB – Simplified partial withdrawal rules
- PIB – Withdrawal rules explained
- Mint – EPF Scheme 2026 notified
- EPFO Member Portal
- EPFO official website