EPFO reveals conditions to join EPF, EPS and EDLI

The Ministry of Labour and Employment has increased the Employees’ Provident Fund (EPF) wage ceiling from Rs 15,000 to Rs 25,000. With this increase, more employees will be able to join the Employees' Provident Fund (EPF), the Employees' Pension Scheme (EPS) and the Employees' Deposit-Linked Insurance (EDLI) Scheme.

But who are these employees? The Employees’ Provident Fund Organisation (EPFO) has clarified the conditions employees must meet to become members of all three schemes, and how the revised wage ceiling will impact their PF contributions and retirement savings.

The EPF is a retirement savings scheme for employees of the unroganised sector. The EPF provides an interest rate on the monthly contribution to the employee’s EPF account.


The current EPF interest rate is 8.25%.

The EPS funds a monthly pension after retirement. The EDLI provides a life-insurance cover to a deceased employee’s family.

What are the conditions to join EPF, EPS and EDLI?

As per the EPFO’s social media post on X, “The EPFO wage ceiling, increased from Rs 15,000 to Rs 25,000 per month, effective September 17, 2026. Employees earning wages between Rs 15,000 and Rs 25,000 per month in EPFO-registered establishments shall be mandatorily covered under the EPF, EPS and EDLI.”

Does it mean that employees who are earning less than Rs 15,000 per month as basic pay can’t join the EPF, EPS and EDLI schemes?

No, those earning up to Rs 15,000 as basic pay can also join the EPF, EPS and the EDLI schemes.

As per information available on the EPFO’s official website, “It means employees drawing wages of up to Rs 25,000 per month will now be mandatorily required to become members of the EPF, EPS and EDLI schemes, and both employees and employers will contribute on wages up to Rs 25,000.”

Will an employee's PF contribution increase because of the revised wage ceiling?

Where PF contributions are required to be made on the revised applicable wage, the employee's contribution may increase, since it is calculated as a percentage of PF wages. For example, at a PF wage of Rs 20,000, a 12% employee contribution would be Rs 2,400 per month, compared with Rs 1,800 on a Rs 15,000 wage ceiling.

Will the revised ceiling increase PF accumulation for members?

Yes, for employees who are in the bracket of Rs 15,000-Rs 25,000 or where the employee was earning more than Rs 25,000 but contributing at Rs 15,000. This can result in higher EPF accumulation along with applicable interest. The actual amount depends on the wage on which contributions are made.