EPF wage ceiling: How EPS pension can rise by 67%

By Sohail Khan 16 September 2026, 4:00 pm

Synopsis

The central government has raised the provident fund wage ceiling to Rs 25,000 monthly, which will enhance social security coverage for many organised sector employees. Those earning this amount in basic pay and dearness allowance will now be included in the Employee Provident Fund and Employee Pension Scheme. This adjustment aims to broaden the reach of social security benefits, thus supporting a larger workforce in their retirement planning.

Image for 67% rise in EPS pension for these employees as wage ceiling hike to Rs 25,000 gets cabinet’s approval — EPFO

In an important decision that can impact a large number of employees from the organised sector, the central government today (Wednesday, September 16, 2026) approved a hike in the monthly wage ceiling for Employees' Provident Fund (EPF) from Rs 15,000 to Rs 25,000.

In a cabinet briefing today, Union minister Ashwini Vaishnaw said that the government would spend around Rs 11,339 crore every year as part of the move, which is aimed at widening social security coverage for employees.

This came as a significant change since the EPF wage ceiling of Rs 15,000 had been in effect since September 1, 2014. The change will bring a lot of new employees into the coverage of the EPF and Employees’ Pension Scheme (EPS) as those earning up to Rs 25,000 in basic pay and dearness allowance will be required to join both schemes.

Basic pay	₹ 25,000
Service years	32
Pension under Rs 15,000 wage ceiling	₹ 6,857
Pension under Rs 25,000 wage ceiling	₹ 11,429
Extra pension under Rs 25,000 wage ceiling	₹ 4,571
Pension increase (%)	67%

25 years of eligible service- Know your EPS pension

Basic pay	₹ 25,000
Service years	27
Pension under Rs 15,000 wage ceiling	₹ 5,786
Pension under Rs 25,000 wage ceiling	₹ 9,643
Extra pension under Rs 25,000 wage ceiling	₹ 3,857
Pension increase (%)	67%

20 years of eligible service- Know your EPS pension

Basic pay	₹ 25,000
Service years	22
Pension under Rs 15,000 wage ceiling	₹ 4,714
Pension under Rs 25,000 wage ceiling	₹ 7,857
Extra pension under Rs 25,000 wage ceiling	₹ 3,143
Pension increase (%)	67%

15 years of eligible service- Know your EPS pension

Basic pay	₹ 25,000
Service years	15
Pension under Rs 15,000 wage ceiling	₹ 3,214
Pension under Rs 25,000 wage ceiling	₹ 5,357
Extra pension under Rs 25,000 wage ceiling	₹ 2,143
Pension increase (%)	67%

10 years of eligible service- Know your EPS pension

Basic pay	₹ 25,000
Service years	10
Pension under Rs 15,000 wage ceiling	₹ 2,143
Pension under Rs 25,000 wage ceiling	₹ 3,571
Extra pension under Rs 25,000 wage ceiling	₹ 1,429
Pension increase (%)	67%