EPF for employers.
On PF wages up to ₹25,000 a month, the worker pays 12% and the employer pays 12% plus 1% for EDLI and admin charges, by the 15th of the next month.
Updated 18 October 2026 from the Gazette and EPFO's documents. How we check
- Worker pays
- 12%
- Employer paysplus 0.5% EDLI and 0.5% admin
- 12%
- Wage ceilingfrom 17 September 2026
- ₹25,000
- Duewith the ECR
- 15th
Where the 25% goes.
Two shares of 12% on the same wages, and two small charges the employer pays on top.
Work it out.
For one worker, a full month. Above ₹25,000 the contributions stop at the ceiling.
- Worker, 12%
- ₹2,400
- Employer to EPS, 8.33%
- ₹1,666
- Employer to EPF
- ₹734
- EDLI, 0.5%
- ₹100
- Admin charges, 0.5%
- ₹100
- Cost to the employer
- ₹2,600
- Paid in each month
- ₹5,000
Rounded to the nearest rupee, as the Scheme requires. Admin charges are at least ₹500 a month for the establishment.
The ceiling rose on 17 September 2026.
What EPFO's FAQs ask employers to do now.
- September's return
- Work out 1 to 16 September on ₹15,000 and 17 to 30 September on ₹25,000, in a single ECR.
- Newly covered workers
- Enrol anyone in service on 17 September earning up to ₹25,000 who had been left out, in EPF, EPS and EDLI from that date. The employer enrols them; they do not apply.
- Pension membership
- EPF members earning ₹15,000 to ₹25,000 who were outside EPS join it from 17 September 2026.
- Unrecovered share
- A worker's September share that was not deducted can be recovered in the next payroll; the full amount was still due by 15 October.
The rules.
Who it covers
- Establishments
- Every establishment with 20 or more employees. Workers above the ceiling count towards the 20, and an establishment stays covered if its headcount later falls.
- Workers
- Everyone on PF wages up to ₹25,000 when they join. A worker joining above it is left out unless worker and employer jointly opt in.
- Which wages
- Basic pay, dearness allowance and retaining allowance (section 2(88) of the Code), not the gross salary. If HRA, overtime and other allowances come to more than half of pay, the excess counts too.
How much
- Worker
- 12% of PF wages up to the ceiling, deducted from wages.
- Employer
- 12% of the same wages: 8.33% to the pension fund (EPS) for its members, the rest to the worker's EPF account. It cannot be recovered from wages or folded into the cost to company.
- EDLI and admin
- 0.5% each, paid by the employer; admin charges are at least ₹500 a month for the establishment (EPFO's figures).
- Rounding
- To the nearest rupee, 50 paise and above counting as the next rupee.
When
- Payment and return
- Pay and file the electronic challan-cum-return (ECR) within 15 days of the month's end: by the 15th.
- Paid late
- Interest of 12% a year from the due date, plus damages on the arrears: 0.25% a month for under two months, 0.5% for two to four, 1% beyond four, up to the arrears themselves. A late ECR costs ₹500 a day, up to that month's admin charges.
Contract workers
- Covered
- A worker employed through a contractor is an employee of the establishment under the Code, and the contractor is also an employer.
- Who is liable
- The principal employer, jointly and severally with the contractor. It can recover what it pays from the contractor's bills or as a debt.
- Paperwork
- The principal employer declares its contractors in Form X; each contractor sends Form XI within 10 days of the month's end; the principal employer files Form XII within 20 days.
Questions
Is EPF compulsory for a worker earning more than ₹25,000?
Not for a new joiner: a worker whose PF wages are above the ceiling when they join is excluded unless they and the employer jointly opt to contribute on higher wages. For existing members, contributions are worked out on ₹25,000 unless both opt for more.
Who pays EPF for contract workers?
The contractor deducts and pays it, but the principal employer remains responsible with the contractor. If the contractor does not pay, the principal employer must, and can recover it from the contractor.
Does ESIC change with the EPF ceiling?
No. ESIC has its own limit of ₹21,000 a month, and its own rates of 3.25% and 0.75%.
Sources (8)
- The Code on Social Security, 2020 (First Schedule: EPF and ESIC coverage) Act No. 36 of 2020, 29 September 2020. Ministry of Law and Justice.
- EPF wage ceiling of ₹25,000 a month from 17 September 2026 (Gazette notification, as hosted by EPFO) S.O. 5109(E), 17 September 2026. Ministry of Labour and Employment.
- EPF wage ceiling of ₹15,000 a month under the Code (superseded by S.O. 5109(E)) S.O. 2702(E), 29 May 2026. Ministry of Labour and Employment.
- Employees' Provident Fund Scheme, 2026 (paras 2, 9, 18 to 20, 23, 24, 27 to 29: contributions, due date, damages, contractors) G.S.R. 525(E), 29 June 2026. Ministry of Labour and Employment.
- Employees' Pension Scheme, 2026 (paras 4 to 7: 8.33% to the pension fund, membership) G.S.R. 527(E), 29 June 2026. Ministry of Labour and Employment.
- Employees' Deposit Linked Insurance Scheme, 2026 (paras 5 to 7) G.S.R. 526(E), 29 June 2026. Ministry of Labour and Employment.
- EPFO: frequently asked questions on the wage ceiling (contribution rates, EDLI and admin charges) EPFO FAQs, 28 September 2026. Employees' Provident Fund Organisation.
- Interest at 12% a year on amounts due under the Code on Social Security S.O. 2698(E), 29 May 2026. Ministry of Labour and Employment.
Behind on any of this? The Vayasya Network of CAs, labour lawyers and compliance consultants can help. Get compliance help
HIRING FOR A UNIT
Need a crew on your site?
Tell us the work, the headcount and the shifts.
Request a crewLOOKING FOR WORK
Factory and warehouse jobs.
In Bengaluru, Dehradun, Haridwar, Jalandhar–Kapurthala, Punjab and Uttarakhand. Full 8-hour shifts. There is no fee to apply.
See jobs