LatestIncome Tax 30 September 2026
New EPF & EPS Rules Raise Wage Ceiling to Rs 20,000
Effective October 2026, India's Employees' Provident Fund (EPF) and Employees' Pension Scheme (EPS) will apply a higher wage ceiling of Rs 20,000 per month, up from the previous limit. Employers must adjust their PF contributions accordingly, and workers earning above the old threshold will now be eligible for full statutory benefits. The change aims to broaden social security coverage and align with recent tax reforms.
Key change: The EPF/EPS wage ceiling increases to Rs 20,000 per month starting Oct 2026.
- Employers will calculate PF and EPS contributions on the full Rs 20,000 salary, even if the employee earns less.
- Employees previously excluded from EPS due to the lower ceiling will now receive pension benefits.
- The revision aligns with the latest Income Tax Bill and is expected to improve retirement savings for low‑ and middle‑income workers.
For full details, see the Economic Times article.
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