EPFO ₹25,000 ceiling: How much PF will be deducted from your salary from October 2026?
The EPFO’s revised ₹25,000 wage ceiling will apply for the full month from October 2026. For employees with ₹20,000 in PF wages, the monthly EPF deduction will rise to ₹2,400.
- Sep 27, 2026,
- Updated Sep 27, 2026 6:05 AM IST
Employees earning between ₹15,000 and ₹25,000 in monthly PF wages could see a higher provident fund deduction from October 2026 following the revision of the statutory wage ceiling. For an employee with PF wages of ₹20,000, the monthly employee contribution will be ₹2,400, compared with ₹1,800 when contributions were restricted to the earlier ₹15,000 ceiling.
The revised ceiling, increased from ₹15,000 to ₹25,000, came into effect on September 17, 2026. While September requires proportionate calculations under the old and new ceilings, October will be the first full wage month under the revised framework.
How much PF will be deducted on a ₹20,000 salary?
According to EPFO’s illustration, an employee whose monthly PF wages are ₹20,000 will contribute 12%, or ₹2,400, towards EPF from October.
The employer will also contribute ₹2,400. However, the employer’s contribution will be divided between the Employees’ Pension Scheme (EPS) and the provident fund account. Of this amount, ₹1,666 will go towards EPS and ₹734 towards EPF.
| Contribution component | Monthly amount |
|---|---|
| Employee contribution to EPF (12%) Advertisement | ₹2,400 |
| Employer contribution to EPS (8.33%) | ₹1,666 |
| Employer contribution to EPF (3.67%) | ₹734 |
| Total employee and employer contribution | ₹4,800 |
Source: EPFO’s illustration for the October 2026 wage month.
What changes for existing EPF members?
The revised ceiling also affects employees who were already EPF members but were excluded from EPS because their wages exceeded the earlier ₹15,000 threshold.
EPFO says an existing EPF member earning ₹20,000 who was not an EPS member is required to enter EPS following the ceiling revision, subject to the applicable provisions. Consequently, the employer’s contribution will be split between EPF and EPS instead of going entirely towards EPF.
EPFO contribution from October 2026: ₹20,000 PF wage
| Particulars | Old ₹15,000 ceiling | New ₹25,000 ceiling — ₹20,000 PF wage |
|---|---|---|
| Employee EPF contribution | ₹1,800 | ₹2,400 |
| Employer contribution to EPS | ₹1,250 | ₹1,666 |
| Employer contribution to EPF | ₹550 | ₹734 |
| Total employer contribution | ₹1,800 | ₹2,400 |
| Total employee + employer contribution | ₹3,600 | ₹4,800 |
| Employee’s additional EPF contribution | — | ₹600 more/month |
Note: The ₹15,000 column reflects the EPFO illustration, while the ₹20,000 column applies from the October 2026 wage month.
Will everyone contribute on ₹25,000?
No. The ₹25,000 figure is the revised statutory wage ceiling, not a uniform contribution base for every employee.
Where an employee’s applicable PF wages are below ₹25,000, contributions are determined with reference to those wages. EPFO has also clarified that PF wages are not necessarily the same as gross salary.
For instance, EPFO’s October illustration puts the employee contribution at ₹1,200 for PF wages of ₹10,000, ₹2,400 for ₹20,000 and ₹3,000 at the revised ₹25,000 ceiling.
What happens to take-home salary?
Employees whose contributions were previously restricted to ₹15,000 may see their monthly PF deduction rise. In the ₹20,000 example, the employee contribution increases by ₹600, from ₹1,800 to ₹2,400, with a corresponding increase in the employer’s contribution.
The impact on take-home pay will depend on the employee’s existing contribution arrangement and salary structure. EPFO has clarified that the employer’s statutory contribution and the employee’s contribution are legally distinct, and the employer’s share cannot simply be treated as an employee deduction by describing it as part of CTC.
Employees earning between ₹15,000 and ₹25,000 in monthly PF wages could see a higher provident fund deduction from October 2026 following the revision of the statutory wage ceiling. For an employee with PF wages of ₹20,000, the monthly employee contribution will be ₹2,400, compared with ₹1,800 when contributions were restricted to the earlier ₹15,000 ceiling.
The revised ceiling, increased from ₹15,000 to ₹25,000, came into effect on September 17, 2026. While September requires proportionate calculations under the old and new ceilings, October will be the first full wage month under the revised framework.
How much PF will be deducted on a ₹20,000 salary?
According to EPFO’s illustration, an employee whose monthly PF wages are ₹20,000 will contribute 12%, or ₹2,400, towards EPF from October.
The employer will also contribute ₹2,400. However, the employer’s contribution will be divided between the Employees’ Pension Scheme (EPS) and the provident fund account. Of this amount, ₹1,666 will go towards EPS and ₹734 towards EPF.
| Contribution component | Monthly amount |
|---|---|
| Employee contribution to EPF (12%) Advertisement | ₹2,400 |
| Employer contribution to EPS (8.33%) | ₹1,666 |
| Employer contribution to EPF (3.67%) | ₹734 |
| Total employee and employer contribution | ₹4,800 |
Source: EPFO’s illustration for the October 2026 wage month.
What changes for existing EPF members?
The revised ceiling also affects employees who were already EPF members but were excluded from EPS because their wages exceeded the earlier ₹15,000 threshold.
EPFO says an existing EPF member earning ₹20,000 who was not an EPS member is required to enter EPS following the ceiling revision, subject to the applicable provisions. Consequently, the employer’s contribution will be split between EPF and EPS instead of going entirely towards EPF.
EPFO contribution from October 2026: ₹20,000 PF wage
| Particulars | Old ₹15,000 ceiling | New ₹25,000 ceiling — ₹20,000 PF wage |
|---|---|---|
| Employee EPF contribution | ₹1,800 | ₹2,400 |
| Employer contribution to EPS | ₹1,250 | ₹1,666 |
| Employer contribution to EPF | ₹550 | ₹734 |
| Total employer contribution | ₹1,800 | ₹2,400 |
| Total employee + employer contribution | ₹3,600 | ₹4,800 |
| Employee’s additional EPF contribution | — | ₹600 more/month |
Note: The ₹15,000 column reflects the EPFO illustration, while the ₹20,000 column applies from the October 2026 wage month.
Will everyone contribute on ₹25,000?
No. The ₹25,000 figure is the revised statutory wage ceiling, not a uniform contribution base for every employee.
Where an employee’s applicable PF wages are below ₹25,000, contributions are determined with reference to those wages. EPFO has also clarified that PF wages are not necessarily the same as gross salary.
For instance, EPFO’s October illustration puts the employee contribution at ₹1,200 for PF wages of ₹10,000, ₹2,400 for ₹20,000 and ₹3,000 at the revised ₹25,000 ceiling.
What happens to take-home salary?
Employees whose contributions were previously restricted to ₹15,000 may see their monthly PF deduction rise. In the ₹20,000 example, the employee contribution increases by ₹600, from ₹1,800 to ₹2,400, with a corresponding increase in the employer’s contribution.
The impact on take-home pay will depend on the employee’s existing contribution arrangement and salary structure. EPFO has clarified that the employer’s statutory contribution and the employee’s contribution are legally distinct, and the employer’s share cannot simply be treated as an employee deduction by describing it as part of CTC.