India Increases the Wage Ceiling for Employee Provident Fund Contributions
On September 17, 2026, an increase in the wage ceiling for the Employees’ Provident Fund went into effect in India. The new wage ceiling for mandatory coverage is 25,000 INR (~$260 USD) per month, up from 15,000 INR (~$155 USD) per month. The increase effectively makes at least five million more workers eligible for mandatory social security coverage.
The Employee Provident Fund (EPF) is India’s government-backed retirement savings plan. Both the employee and the employer contribute to the fund, and employers may limit EPF contributions to the statutory wage ceiling. Under the new 25,000 INR wage ceiling, an employer’s monthly contribution amounts to 3,000 INR (~$31 USD).
For employers in India, the larger EPF contributions may be accompanied by higher administrative costs due to the expanded pool of eligible employees.
Source: Littler
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