EPFO answers employers’ questions on the ₹25,000 ceiling: one ECR for September 2026, contributions split at 17 September, no shift to 1 October
EPFO’s FAQs on the revised wage ceiling tell employers to file a single ECR for September 2026, computing contributions separately for 1–16 September (₹15,000 ceiling) and 17–30 September (₹25,000 ceiling). The employee share that could not be deducted may be recovered in the next payroll, but the full remittance is still due by 15 October. The EDLI maximum stays at ₹7 lakh.
Key facts
In 30 seconds
- The ceiling was notified by S.O. 5109(E) dated 17 September 2026 under section 2(89) of the Code on Social Security, 2020, superseding S.O. 2702(E) dated 29 May 2026.
- No two ECRs: September 2026 goes in a single ECR, with wages apportioned 16/30 and 14/30 between the two ceiling periods.
- Employers may recover the employee share for newly covered employees in the next payroll cycle without prior approval of the Inspector-cum-Facilitator — but must remit both shares by 15 October.
- An EPF member earning ₹15,000–₹25,000 who was outside EPS becomes an EPS member from 17 September 2026.
- The effective date is not being moved to 1 October 2026.
- EDLI maximum assurance benefit remains ₹7 lakh; the Government’s EPS contribution stays at 1.16% of wages up to ₹15,000 (₹174 a month).
हिंदी में सार
EPFO ने ₹25,000 की नई वेतन सीमा पर नियोक्ताओं के सवालों के जवाब (FAQs) जारी किए हैं। सितंबर 2026 के लिए एक ही ECR भरना है — 1 से 16 सितंबर तक ₹15,000 की सीमा और 17 से 30 सितंबर तक ₹25,000 की सीमा पर अलग-अलग गणना करके। नए कवर हुए कर्मचारियों का अंशदान अगले महीने के वेतन से काटा जा सकता है, पर पूरा भुगतान 15 अक्टूबर तक करना होगा। EDLI की अधिकतम राशि ₹7 लाख ही रहेगी और लागू होने की तारीख़ 17 सितंबर ही है, 1 अक्टूबर नहीं।
What EPFO has published
EPFO has put out a set of 48 Frequently Asked Questions on the revision of the statutory wage ceiling from ₹15,000 to ₹25,000 a month, along with the Gazette notification itself — S.O. 5109(E) dated 17 September 2026, issued by the Ministry of Labour and Employment under clause (89) of section 2 of the Code on Social Security, 2020. The notification supersedes S.O. 2702(E) dated 29 May 2026 and takes effect from its publication in the Gazette. The FAQs deal mostly with how the mid-month change is to be handled in payroll.
September 2026: one ECR, two periods
Employers do not file two ECRs. The September wage month goes in a single ECR, with contributions worked out for two periods — up to 16 September on the ₹15,000 ceiling and from 17 September on the ₹25,000 ceiling. EPFO’s illustration, for an employee with wages of ₹20,000:
| September 2026 | A: excluded employee, member from 17 Sept | B: EPF member on ₹20,000, new to EPS | C: member on ₹15,000 cap till 16 Sept |
|---|---|---|---|
| Wages, 1–16 Sept (16 days) | ₹0 | ₹10,666.67 | ₹8,000.00 |
| Wages, 17–30 Sept (14 days) | ₹9,333.33 | ₹9,333.33 | ₹9,333.33 |
| EPF wage for the month | ₹9,333.33 | ₹20,000.00 | ₹17,333.33 |
| EPS wage for the month | ₹9,333.33 | ₹9,333.33 | ₹17,333.33 |
| Employee EPF (12%) | ₹1,120.00 | ₹2,400.00 | ₹2,080.00 |
| Employer EPF (A/c 1) | ₹342.53 | ₹1,622.53 | ₹636.13 |
| Employer EPS (A/c 10) | ₹777.47 | ₹777.47 | ₹1,443.87 |
| EDLI (A/c 21, 0.50%) | ₹46.67 | ₹100.00 | ₹86.67 |
| Admin charges (A/c 2, 0.50%) | ₹46.67 | ₹100.00 | ₹86.67 |
| Total remittance | ₹2,333.34 | ₹5,000.00 | ₹4,333.34 |
EPFO says it will update the employer portal and relax validations so that proportionate contributions can be reported.
Could not deduct the employee share in September?
For employees newly made eligible, the employer may recover the employee share in the next payroll cycle, without formal relaxation or prior approval of the Inspector-cum-Facilitator; instructions are being issued by EPFO. This is only an internal payroll adjustment. The ECR and the full remittance of both shares for September must still be made by 15 October to avoid interest and penalty.
From October: full-month contributions
| Monthly PF wages (Basic + DA) | Employee EPF (12%) | Employer EPS (8.33%) | Employer EPF (3.67%) | EDLI (0.5%) | Admin (0.5%) |
|---|---|---|---|---|---|
| ₹10,000 | ₹1,200 | ₹833 | ₹367 | ₹50 | ₹50 |
| ₹15,000 (old cap) | ₹1,800 | ₹1,250 | ₹550 | ₹75 | ₹75 |
| ₹20,000 | ₹2,400 | ₹1,666 | ₹734 | ₹100 | ₹100 |
| ₹25,000 (new cap) | ₹3,000 | ₹2,083 | ₹917 | ₹125 | ₹125 |
| ₹35,000 (above cap) | ₹3,000 | 0 | ₹3,000 (12%) | ₹125 | ₹125 |
EPS membership is available only to employees whose wages, on the date of joining or on the date the new ceiling took effect, do not exceed the ceiling. Minimum administrative charges are ₹500 a month for an establishment with at least one contributing member, and ₹75 a month where there is none.
Other answers employers were waiting for
- Gross salary is not the test. The ceiling is applied to wages as defined in section 2(88) of the Code. Gross ₹50,000 with EPF wages of ₹25,000: covered under EPF, EPS and EDLI. Gross ₹60,000 with EPF wages of ₹30,000: not required to be covered, but may join voluntarily with the employer’s consent.
- CTC. The employer’s statutory contribution cannot be treated as an employee deduction merely by describing it as part of CTC.
- Already contributing above ₹25,000. The revision does not by itself require such contributions to be reduced.
- No application by employees. Enrolment is the employer’s statutory responsibility.
- EDLI. The wage-linked calculation can reach ₹10.5 lakh, but the benefit remains limited to ₹7 lakh; an actuarial valuation of the fund will be undertaken.
- PMVBRY Part A. The benefit stays at one month’s EPF wage, maximum ₹15,000.
- No postponement. The ceiling remains effective from 17 September 2026, not 1 October.
What employers should do now
- Identify employees in the ₹15,000–₹25,000 band, existing members restricted to ₹15,000, and those newly covered from 17 September 2026.
- Review the wage components used for PF, and the EPS eligibility of affected employees.
- Compute September separately for 1–16 and 17–30 September and file one ECR by 15 October.
- Review contractor compliance where contract labour is engaged.
- Keep a clear audit trail of the calculations, and watch for EPFO’s further circulars and portal instructions.
Questions and answers
Do employers have to file two ECRs for September 2026?
No. EPFO’s FAQs say the September 2026 wage month is to be dealt with in a single ECR, with the contribution calculated taking into account the two wage-ceiling periods — up to 16 September and from 17 September 2026.
Can the additional employee contribution for September be recovered from October salary?
Yes, for employees newly made eligible for coverage where deduction could not be effected; no prior approval of the Inspector-cum-Facilitator is needed. But the employer must still file the September ECR and remit both the employer and employee shares by 15 October.
Is an employee with gross salary above ₹25,000 covered?
It depends on EPF wages, not gross salary. The FAQs give two examples: gross ₹50,000 with EPF wages of ₹25,000 is covered under EPF, EPS and EDLI; gross ₹60,000 with EPF wages of ₹30,000 is not required to be covered but can join voluntarily with the employer’s consent.
Does the maximum EDLI benefit rise to ₹10.5 lakh?
No. The FAQs say the benefit remains limited to the existing maximum of ₹7 lakh, and that an actuarial valuation of the EDLI fund will be undertaken, based on which benefits may be decided in future.
Is the effective date being postponed to 1 October 2026?
No. The FAQs state that the revised wage ceiling remains effective from 17 September 2026.
Published 28 September 2026. Updated 6 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.