The Union Cabinet has raised the EPF wage ceiling from ₹15,000 to ₹25,000 per month, effective September 17, 2026. PF contributions remain 12% of eligible wages, meaning contributions can rise to ₹3,000 each for employees and employers where wages reach the new ceiling. However, the increase is not automatic for everyone and depends on salary structure. Employees earning above ₹15,000 may see lower take-home pay due to higher deductions, while the additional contribution boosts long-term retirement savings and social-security coverage.
Please click here to read the full article by Preetha Soman, Partner, and Madhur Khandelwal, Principal Associate, published in The Economic Times.
Preetha is a labour and employment law expert, having close to ten years of experience. She has over the past decade, worked on a wide range of complex and intricate labour law matters.