30/09/2026
This is to inform you that the Provident Fund (PF) statutory wage ceiling has been enhanced from Basic salary of Rs 15,000/- to Rs 25,000/-, pm. The revision is effective 17th September 2026. The rate of contributions towards EPF and Pension fund remains same as at present.
Accordingly, the revised PF wage ceiling has been implemented in the September 2026 payroll.
Benefits of the Revised PF Ceiling
The enhancement of the PF wage ceiling provides the following benefits to employees:
1. Higher PF Savings:
A higher eligible wage ceiling enables a higher contribution to Provident Fund, thereby increasing employees' retirement savings.
2. Increased Retirement Corpus:
Higher monthly PF contributions, together with the interest earned on the PF balance, can help employees build a larger retirement corpus over the long term.
3. Enhanced Social Security:
Increased PF accumulation provides stronger financial security for employees after retirement or during eligible PF loans / withdrawal situations.
4. Higher Employer Contribution:
The employer's PF contribution also increases, resulting in a higher overall PF and pension accumulation
5. Long-Term Financial Benefit:
The additional contribution made every month can accumulate significantly over the years due to the power of compounding and annual interest on the PF balance.
