EPFO New Update 2026: If you are a PF account holder, this news could be very significant for you. The Central Government made an announcement on September 16, 2026, followed by the issuance of a notification. This notification raised the monthly salary limit for mandatory EPFO coverage from ₹15,000 to ₹25,000.
This change came into effect on September 17. It is estimated that the change could bring over 51 lakh additional employees under the ambit of social security. Essentially, the amendment means that certain employees earning between ₹15,000 and ₹25,000—who were previously excluded due to the salary limit—can now be covered, provided other necessary conditions are met.
What are the benefits of the three main EPFO schemes?
Under the new salary limit, eligible employees can avail themselves of the benefits of three major social security schemes. A prescribed contribution is deducted from the employee’s salary, and the employer also contributes in accordance with the rules. Interest is earned on these savings as per applicable regulations, providing financial support at the time of retirement.
Additionally, eligible employees can avail pension benefits upon fulfilling the scheme’s conditions. Pension eligibility and the amount depend on the pensionable salary and the applicable rules. Furthermore, in the event of an eligible employee’s death during service, their family or nominee can receive insurance benefits as per the scheme’s rules. The primary objective of these three schemes is to provide financial security to employees.
Will the ‘in-hand’ salary be reduced?
With the increase in the salary limit, there may be changes to the monthly take-home pay of some employees. If a higher PF contribution is deducted from an employee’s salary than before, their ‘in-hand’ salary could decrease. On the other hand, higher savings could accumulate in the PF account.
For instance, if an employee’s PF contribution is calculated based on a limit of ₹25,000 instead of the ₹15,000 limit, the contribution amount would increase. The actual deduction will depend on the salary structure, applicable contribution rates, and relevant rules.
What should employees do?
Employees should seek information from their company’s HR department regarding the new salary limit. You can enquire about the mandatory EPFO coverage under the new system. Additionally, employees should review details regarding their PF deductions and verify the information through their PF account and the official EPFO portal. If any changes are required, they should be made via the official portal.