In Employees Provident Fund i.e. EPF, the government has increased the salary limit from Rs 15,000 to Rs 25,000. This change has come into force from this month. With this, the salary ceiling of EPF has reached the level of Rs 25,000 for the first time. About 74 years ago this limit of EPF was only Rs 300. When the EPF scheme was launched in November 1952, employees earning up to Rs 300 per month were included in its purview. After this the government changed this limit at different times. From 1952 to 2026, the salary cap has changed 9 times.

When the EPF scheme was implemented in November 1952, the salary cap was Rs 300 per month. About four and a half years later, in June 1957, it was raised to Rs 500. After this, another major change took place in December 1962 and the wage ceiling was raised to Rs 1,000 per month. After this, the next change in this limit took place after about 14 years.

EPF Salary Limit in Initial Phase

November 1952: Rs. 300
June 1957: Rs. 500
December 1962: Rs. 1,000

That is, in the first 10 years of EPF implementation, the salary cap will be Rs. 300 to Rs. 1,000 had gone.

In 1976, this limit was Rs 1,600

In December 1976, the government raised the salary limit of EPF to Rs. 1,000 to Rs. 1,600 did. After about 9 years in September 1985 this limit was increased to Rs 2,500. After this, in November 1990 the wage limit was raised to Rs. 3,500 and in October 1994 Rs. 5,000 was made. Another change took place in June 2001 and the salary limit of EPF was increased from Rs. 6,500 reached.

A journey from 1976 to 2001

December 1976: Rs. 1,600
September 1985: Rs. 2,500
November 1990: Rs. 3,500
October 1994: Rs. 5,000
June 2001: Rs. 6,500

The limit of Rs 6,500 lasted for more than 13 years

In June 2001 Rs. 6,500 salary cap remained in effect till August 2014. It means that there has been no change in EPF salary limit for more than 13 years. In September 2014, the government increased it from Rs 6,500 to Rs 15,000. This was a big change, as in one fell swoop the wage ceiling was Rs. 8,500 had increased. After this, the limit of Rs 15,000 remained for about 12 years.

In 2026 Rs. 15,000 to Rs. 25,000 do

Now in September 2026, the government has again increased the salary limit of EPF. From September 17, 2026, the new limit is Rs 25,000. That is, the limit which was Rs 15,000 in 2014 has now reached Rs 25,000. With this change, new employees earning salary above Rs 15,000 and up to Rs 25,000 can also come under EPF coverage.

From 2014 to 2026

September 2014: Rs. 15,000
Up to 16 September 2026: Rs. 15,000
From 17 September 2026: Rs. 25,000

How will the Rs 25,000 limit affect the employee?

The new pay limit will directly affect employees whose basic pay is Rs. 15,000 but above Rs. 25,000 and who come under the new mandatory EPF coverage.

Suppose the basic salary of an employee is Rs. 25,000 and the contribution is Rs. 25,000 is done within the full limit. 12 percent employee contribution will be Rs 3,000. Earlier, the employee’s 12 percent contribution was Rs 1,800 within a salary limit of Rs 15,000.

That is, the employee’s monthly contribution at the maximum wage ceiling.

Before: Rs. 1,800
Now: Rs. 3,000
Difference: Per month Rs. 1,200

However, it does not mean that each employee’s contribution will automatically increase to Rs 3,000. The actual contribution will depend on the employee’s eligibility, basic pay and applicable EPF rules.

Company contribution may also increase

Along with the employee, the employer also contributes to EPF. 12 percent contribution is Rs 3,000 within the limit of Rs 25,000. The total contribution of the company also includes the share of EPS i.e. Employee Pension Scheme. At a limit of Rs 25,000, the maximum EPS contribution at 8.33 per cent can be around Rs 2,083 per month.

While, Rs. 15,000, the maximum contribution of EPS is Rs. 1,250 was That is, due to increase in salary limit, total savings and pension contribution amount related to EPF and EPS may also increase in case of eligible employees.

Salary in hand may decrease if more PF is deducted.

Another effect of the new limit could be on an employee’s take-home pay. If an employee’s EPF contribution increases, the amount deducted from his salary may also increase. This may reduce the salary received in a month, but on the other hand the amount deposited in EPF will increase. That means the impact for the employee will be two-sided. Less pressure on current take-home pay and more contribution to future retirement savings.

Complete timeline of EPF salary cap from 1952 to 2026

November 1952 to May 1957: Rs. 300
June 1957 December 1962: Rs. 500
December 1962 December 1976: Rs. 1,000
December 1976 August 1985: Rs. 1,600
September 1985 October 1990: Rs. 2,500
November 1990 September 1994: Rs. 3,500
October 1994 to May 2001: Rs. 5,000
June 2001 August 2014: Rs. 6,500
September 2014 16 September 2026: Rs. 15,000
From 17 September 2026: Rs. 25,000

Thus, the salary cap of EPF, which started at Rs 300 in 1952, has gone up to Rs 25,000 in 2026. This means that this limit has increased more than 83 times in about 74 years. Longest duration wage limit Rs. 6,500, which was in effect from 2001 to 2014. After this Rs. 15,000 limit also lasted for about 12 years. Now with the implementation of the new limit of Rs 25,000, the scope of EPF coverage has increased further.