EPF wage ceiling: How EPS pension can rise by 67%
The central government has announced a significant hike in the monthly wage ceiling for Employees Provident Fund (EPF) from Rs 15,000 to Rs 25,000. This decision, made today, will widen social security coverage for employees and potentially increase EPS pension by 67%. The change, aimed at bringing more employees under EPF and Employees' Pension Scheme (EPS), comes into effect from September 1, 2026.
Employees with a basic salary and dearness allowance of Rs 25,000 or below will now be required to join both EPF and EPS. However, they will only become eligible for pension after completing 10 years of service. The EPS pension calculation is based on the pensionable salary, which is the average monthly salary drawn during the last 60 months before exiting the pension fund.
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