LatestCorporate Compliance 29 September 2026
New EPF & EPS Wage Ceiling Shifts Employer Contributions from Oct 2026
From October 2026, the Employee Provident Fund (EPF) and Employees Pension Scheme (EPS) will operate under a raised wage ceiling of Rs 20,000, changing the employer’s PF contribution formula and aligning Fixed Deposit interest rate rules. The new uniform framework aims to standardize contributions and interest calculations across all salary brackets, affecting both existing and future employees.
The Employee Provident Fund (EPF) and Employees Pension Scheme (EPS) are set to change their wage ceiling to Rs 20,000 starting October 2026, altering how employers calculate PF contributions and standardising FD interest rates.
- Employer PF share will be recalculated based on the new ceiling, impacting both new hires and existing staff.
- Fixed Deposit interest rate rules will become uniform across all salary bands from 1 Oct 2026.
- The move aims to simplify compliance and create a level playing field for all employees.
For full details, see the Economic Times article.
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