EPF Wage CeilingEPS pension and the new wage ceiling
Part of the employer's 12% goes to the Employees' Pension Scheme (EPS), which pays a pension for life. The EPFO FAQs set out how the new ceiling changes this.
Questions and answers
How is the employer's 12% split? (Q12)
8.33% goes to EPS and the balance (3.67%) to EPF. On a wage of ₹20,000 that is ₹1,666 to EPS and ₹734 to EPF.
Does the higher ceiling raise the pension? (Q35, Q36, Q42)
It allows pensionable wages up to ₹25,000 to be considered, so the pension of an eligible member may be higher; the actual pension depends on pensionable salary, pensionable service and the EPS conditions, and it does not mean every existing pensioner gets a proportionate increase.
Who can join EPS? (Q13 footnote)
Only employees whose wages on the date of joining, or on the date the new ceiling came into force, did not exceed the ceiling of ₹25,000.
Does the Government's EPS contribution change? (Q37)
No. It stays at 1.16% of wages up to ₹15,000, which is ₹174 a month per member.
What does EPS provide? (Q43, Q44)
A pension for life on retirement and a spouse's pension; if the member dies in service, even after one month, a widow's pension, children's pension for two children up to age 25, and other nominee or parent pensions; and a lifelong pension on total and permanent disablement.
Sources
- Employees' Provident Fund Organisation (EPFO), "Frequently Asked Questions (FAQs): Revision of EPFO Statutory Wage Ceiling from ₹15,000 per month to ₹25,000 per month" (13 pages; notification S.O. 5109(E) dated 17 September 2026, effective 17 September 2026), saved from the EPFO website and read on 13 November 2026. Question numbers (Q1 to Q48) are quoted.
- The wage ceiling revision is also reported in Press Information Bureau releases (PRID 2313829 and 2314111), read on 13 November 2026.
- Not read: the text of the Employees' Provident Funds Scheme, the EPS and EDLI schemes, and any EPFO circular issued after the FAQs.
Rules from the EPFO FAQs on the wage ceiling, read on 13 November 2026. The FAQs are guidance and EPFO may issue later circulars; check epfindia.gov.in. This site is independent, not connected with EPFO, and gives arithmetic, not legal advice.