Union Cabinet on 16.9.2026 approved increasing EPF threshold wages from existing Rs.15000 per month for an employee to fall within the ambit of EPF to Rs.25000 per month. The effctive date will be announced by EPFO.
-Employees with Wages upto Rs.25000 per month will be under coverage of EPF schemes.
-Employees drawing Wages above Rs.25000 and not member of EPFO would be eligible as excluded employees.
-Monthly contribution where employee is contributing on EPF threshold wages will go up from Rs.1800 to Rs.3000 for employer and employee contribution. If you are still working on your revised compensation structure, please factor his change.
-Similar increase in ESI threshold which is Rs.21000 per month presently is expected to bring parity in threshold between EPF and ESI and bring uniform compliance regime in future. This is likely as guidance only.
PIB Press Release appended below
CS Sharad Bhargava
EPFO Wage seeling 25000.pdf (872.5 KB)