EPS pension: Basic pay above Rs 25,000? Why you may not qualify for EPS membership

After increasing the wage ceiling from Rs 15,000 to Rs 25,000, the Employees' Provident Fund Organisation (EPFO) has issued guidelines for employers for checking EPS eligibility of new employees. Employers have been asked to check the wage of every new employee joining their establishment and verify the employee's previous EPS membership status wherever required.

Under the new wage ceiling, organised sector employees earning up to Rs 25,000 as basic pay and dearness allowance (DA), or wages, need to mandatorily join the Employees’ Provident Fund (EPF), Employees’ Pension Scheme (EPS) and the Employees’ Deposit Linked Insurance Scheme (EDLI).



Also read: EPF & EPS rules under new wage ceiling: Earning Rs 20,000 and not EPS member? Know how your employer’s PF contribution will change from October 2026

But what if you are earning more than Rs 25,000 as wages and were not part of the EPS. Do you also need to join the EPS?

In a social media post on X (formerly Twitter), the EPFO has explained EPS membership criteria to employers. The explanation will also help employees know about the latest EPS membership rules.

Earning up to Rs 25,000 or more? Know your EPS membership

EPS membership rules are different depending on whether the employee's wages are up to Rs 25,000 or higher.

If wages are Rs 25,000 or less

If an employee's wages are Rs 25,000 or less, EPS contribution is mandatory, according to the EPFO’s guidelines to employers.

The employer needs to make the applicable EPS contribution along with the EPF contribution to the employee’s respective EPS and EPF accounts.

In this case, there is no need to check whether the employee was an EPS member before the wage ceiling was increased to Rs 25,000.

If employee was an EPS member

If the employee was an EPS member and their current wages are over Rs 25,000, they should mandatorily get the EPS membership.

If employee was not an EPS member

If the employee is earning more than Rs 25,000 and was not an EPS member earlier, no contribution should be made towards the EPS, according to the EPFO’s guidelines for employers.

In such a case, the employee can continue to have EPF contributions without being enrolled in EPS.

Why employers need to check employees’ UAN

The EPFO’s employer guidelines make it important to check the employee's previous EPS membership status rather than deciding eligibility only on the basis of the current salary.

For employees earning more than Rs 25,000, the employer should verify the Universal Account Number (UAN) to find out whether the employee was an EPS member earlier.

What happens if the EPS contribution is deducted incorrectly?

The EPFO's employer guidelines say that if there is a wrong or missed EPS deduction, the employer should contact the EPFO for rectification at the earliest.

An incorrect EPS contribution or a missed contribution can create difficulties for the EPS member later, particularly when the pension or other claim is being settled.

What is the wage ceiling under the EPFO?

The wage ceiling under the EPFO is the maximum monthly wage taken into account for determining mandatory EPF, EPS and EDLI coverage under the Code on Social Security, 2020. It has now been revised from Rs 15,000 to Rs 25,000 per month, bringing a large number of employees within the ambit of mandatory coverage, subject to the applicable provisions of the schemes.

Will employees earning between Rs 15,000 and Rs 25,000 become eligible for EPFO coverage?

Yes. The principal effect of the revision is to extend the mandatory coverage threshold from Rs 15,000 to Rs 25,000 per month, bringing eligible employees in this wage range within the expanded statutory coverage. For example, an employee joining today at a monthly wage of Rs 20,000 is currently outside the EPF and EPS systems; under the revised ceiling, such an employee would be required to be enrolled in both, creating a more robust social security safety net for the employee and their family.