What changed on 17 September 2026
The Union Cabinet raised the EPFO wage ceiling from ₹15,000 to ₹25,000 per month with effect from 17 September 2026, the first change since 2014. Employees earning up to ₹25,000 are now covered mandatorily, and PF calculated on the ceiling rises from a maximum of ₹1,800 to ₹3,000 a month on each side.
How EPF contribution is calculated
| Component | Rate | On a ₹25,000 PF wage |
| Employee EPF | 12% | ₹3,000 |
| Employer to EPS (pension) | 8.33% (up to the ceiling) | ₹2,083 |
| Employer to EPF | 3.67% | ₹917 |
| EDLI insurance | 0.5% | ₹125 |
| EPF admin charges | 0.5% | ₹125 |
PF wage means basic salary plus dearness allowance. Employers may calculate PF on the full wage or restrict it to the ceiling; the calculator supports both.
The Labour Code 50% wage rule
Since the Labour Codes came into force on 21 November 2025, allowances above 50% of total remuneration are added back to wages. For example, with basic of ₹30,000 and allowances of ₹40,000, total pay is ₹70,000; allowances exceed half of it by ₹5,000, so the PF wage becomes ₹35,000.
EPF interest rate
EPF earns 8.25% a year for FY 2025-26, unchanged from FY 2024-25. The projection in the calculator compounds your balance annually and assumes your salary grows at the rate you choose.
