The Ministry of Labour and Employment notified G.S.R. 890(E) on 15 October 2026. It amends paragraph 4(2) of the Employees' Pension Scheme, 2026.
- The employer's contribution to the Pension Fund is now limited to wages of up to ₹15,000 a month. It is 8.33%, so at most ₹1,250 a month.
- The first proviso is amended to omit the words "and the Central Government".
- The amendment is treated as effective from 17 September 2026. The explanatory memorandum says no one is adversely affected by the retrospective effect.
- The principal Scheme was notified as G.S.R. 527(E) on 29 June 2026 and last amended by G.S.R. 847(E) on 25 September 2026.
Effect on payroll
If EPF wages are ₹20,000, the employer's 12% is ₹2,400. Of this, EPS is ₹1,250 (8.33% of ₹15,000) and EPF is ₹1,150. Before the amendment the EPS share in the tools was taken on wages up to ₹25,000. All Labour Law Guru tools now follow the ₹15,000 limit:
- the PF calculator;
- the PF & ESI Returns tool;
- client payroll on the HR desk.
Source: Gazette of India, Extraordinary, Part II, Section 3(i), G.S.R. 890(E), 15 October 2026.
Last reviewed 17-10-2026. General information, not legal advice for a specific case. Check the latest Act, Rules and notifications of the appropriate government before acting.