Archive · 11 Oct 2026
EPFO Clarifies EPS Eligibility After Wage Ceiling Rises to ₹25,000
The government raised the monthly pay limit for mandatory EPFO coverage to ₹25,000.
The change is expected to bring more than 51 lakh additional workers into social security coverage.
EPF is a savings fund, while EPS is a pension scheme.
EPFO says eligible workers earning ₹25,000 or less must be members of EPS.
Workers earning more than ₹25,000 who have never been EPS members cannot join under the described rule.
So, salary is important, but past membership also matters.
The employer’s contribution is split between EPF and EPS when the employee is eligible.
If a pension contribution seems wrong, workers should ask their employer first and can then file a grievance online.
The mandatory EPFO wage ceiling rose from ₹15,000 to ₹25,000 per month, effective 17 September 2026.
The Labour Ministry expects the change to extend statutory social security benefits to more than 51 lakh additional employees.
EPFO says EPS membership and contributions are mandatory for eligible employees earning ₹25,000 or less.
Employees earning above ₹25,000 who were not previously EPS members are ineligible, and EPS contributions should not be deducted.
Employees with contribution concerns should contact their employer first, then use the EPFiGMS grievance portal if unresolved.
- Who
- EPFO and employees covered by the wage-ceiling and EPS eligibility rules.
- What
- EPFO clarified when EPS membership and contributions apply after the monthly wage ceiling increased to ₹25,000.
- When
- The wage-ceiling change took effect on 17 September 2026.
- Where
- India.
- Why
- To explain how wages and prior EPS membership determine eligibility and contributions.
Coverage and contribution rules
Eligibility limits and exceptions
Workers earning ₹25,000 or less
Coverage and contribution rules
EPFO says EPS membership is mandatory for eligible employees in this wage band, and contributions should be deducted.
Eligibility limits and exceptions
Employees should verify their membership history and applicable eligibility conditions before deciding a contribution was withheld incorrectly.
Workers earning above ₹25,000
Coverage and contribution rules
The new wage ceiling is expected to extend statutory social security benefits to more than 51 lakh additional employees.
Eligibility limits and exceptions
Under EPFO’s clarification, those earning above ₹25,000 who were not previously EPS members are ineligible for EPS membership and should not have EPS contributions deducted.
- New wage ceiling
- ₹25,000 per month, up from ₹15,000; effective 17 September 2026.
- Expected additional coverage
- More than 51 lakh employees, according to the Ministry of Labour & Employment.
- EPS eligibility at or below ceiling
- For eligible employees earning ₹25,000 or less, EPS membership is mandatory and contributions are to be deducted.
- EPS eligibility above ceiling
- Employees earning more than ₹25,000 who were not previously EPS members are not eligible for EPS membership under the clarification.
- Employer contribution example
- At ₹25,000 pensionable wages, the stated 12% contribution is ₹3,000: ₹2,082.50 allocated to EPS and ₹917.50 to EPF, subject to eligibility and applicable rules.
- Where to raise an unresolved issue
- EPF i-Grievance Management System (EPFiGMS), after contacting the employer.