Invest

EPF wage ceiling rose from Rs 300 to Rs 25,000: 9 changes since 1952

EPF wage ceiling history
ET Online
1/7
EPF wage ceiling history
The government increased the Employees’ Provident Fund (EPF) wage ceiling from Rs 15,000 to Rs 25,000 through a notification dated September 17, 2026. The wage ceiling has increased from Rs 300 in 1952 to Rs 25,000 in 2026. Here is a look at how the EPF wage ceiling has changed over the years and what the latest hike means for employees and employers.
EPF wage ceiling raised to Rs 25,000
ET Online
2/7
EPF wage ceiling raised to Rs 25,000
The government increased the EPF wage ceiling from Rs 15,000 to Rs 25,000 through a notification on September 17, 2026. The previous increase was in August 2014, when the ceiling was raised from Rs 6,500 to Rs 15,000.

So, the latest increase is the first revision in more than 12 years.
EPF wage ceiling was Rs 300 in 1952
ET Online
3/7
EPF wage ceiling was Rs 300 in 1952
EPF wage ceiling in 1952: Rs 300 per month

When the EPF scheme was launched in November 1952, the wage ceiling was Rs 300 per month. The first two ceiling increases came after around five years each:
1952: Rs 300
1957: Rs 500
1962: Rs 1,000

The ceiling was then unchanged for more than 14 years before the next increase.
EPF wage ceiling changes from 1976 to 2001
ET Online
4/7
EPF wage ceiling changes from 1976 to 2001
EPF wage ceiling history: Rs 1,600 to Rs 6,500
The wage ceiling was increased several times between 1976 and 2001:
December 1976: Rs 1,600
September 1985: Rs 2,500
November 1990: Rs 3,500
October 1994: Rs 5,000
June 2001: Rs 6,500
The wage ceiling remained at Rs 6,500 for more than 13 years before the next increase.
EPF wage ceiling from 2014 to 2026
ET Online
5/7
EPF wage ceiling from 2014 to 2026
EPF wage ceiling increased from Rs 15,000 to Rs 25,000
The government increased the EPF wage ceiling from Rs 6,500 to Rs 15,000 in August 2014.
It remained at Rs 15,000 until September 16, 2026.
From September 17, 2026, the revised wage ceiling is Rs 25,000.
EPF wage ceiling:
Nov 1952-May 1957--Rs 300
Jun 1957-Dec 1962---Rs 500
Dec 1962-Dec 1976--Rs 1,000
Dec 1976-Aug 1985--Rs 1,600
Sep 1985-Oct 1990--Rs 2,500
Nov 1990-Sep 1994--Rs 3,500
Oct 1994-May 2001--Rs 5,000
Jun 2001-Aug 2014--Rs 6,500
Sep 2014-Sep 16, 2026--Rs 15,000
Sep 17, 2026 onwards--Rs 25,000
How EPF contribution changes
ET Online
6/7
How EPF contribution changes
EPF contribution on Rs 25,000 basic salary: Check new limit
Under the revised EPF wage ceiling, employees with a basic salary of up to Rs 25,000 will come under mandatory EPF, EPS and EDLI coverage, subject to the applicable rules.
For employees with a basic pay of Rs 25,000 or more, the minimum monthly EPF contribution from the employee and the employer will be Rs 3,000 each.
Earlier, with the Rs 15,000 wage ceiling, the EPF contribution in such cases was Rs 1,800 per month each.
The higher EPF contribution may reduce an employee’s in-hand salary but it can increase the amount saved towards retirement.
EPS and EDLI contribution impact
ET Online
7/7
EPS and EDLI contribution impact
The higher wage ceiling will also impact an employer’s EPS contributions towards an employee’s EPS corpus.
EPS contributions at Rs 25,000 or a higher basic salary will rise to a maximum of Rs 2,083.
Under the earlier Rs 15,000 wage ceiling, the employer's maximum monthly EPS contribution for an EPS subscriber was Rs 1,250.
The EDLI cover is also linked to the wage ceiling. With the ceiling now increased, the maximum EDLI cover of Rs 7 lakh is expected to rise as well. However, there is no change in the ELDI cover so far.
Open in App
Success
This article has been saved