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Guides / PF wage ceiling rises to ₹25,000 from 17 September 2026
Guide

PF wage ceiling rises to ₹25,000 from 17 September 2026

The EPF wage ceiling — the pay level provident fund is calculated on — rises from ₹15,000 to ₹25,000 a month from 17 September 2026. Here's what HR and payroll teams need to check.

1. What's changing

Until 16 September 2026, employee PF was calculated on basic + DA up to ₹15,000 a month, even if actual basic was higher, unless the employer opted for a higher voluntary contribution. From 17 September 2026, that ceiling moves to ₹25,000.

Employees whose basic + DA falls between ₹15,000 and ₹25,000 will see a higher PF deduction from that date, with a matching rise in employer cost.

2. What HR and payroll need to do

Update the PF wage ceiling in your payroll system before the September 2026 run — in HRHelm this is an editable rate in statutory settings, not a code change.

Pro-rate the month of change: days up to 16 September use the old ceiling, days from 17 September use the new one.

Recheck take-home pay communications — employees on the affected band will see lower net pay and should be told why, ahead of the payslip.

Confirm whether your EPS (pension) wage ceiling also changes, since that decides how the employer's 12% splits between EPF and EPS.

3. See the numbers

Use the free PF calculator to compare the employee and employer contribution before and after the change, for a given basic + DA.

Try the PF calculator

Employee and employer provident fund contribution on basic + DA, at the standard 12% rate.