EPF, EPS, EDLI contributions on ₹20,000, ₹30,000, ₹50,000, ₹1 lakh salary in September: Explained

The EPFO has explained the mechanics of September EPFO contributions in a set of frequently asked questions (FAQs) on the ceiling revision. Contributions for September, it said, should be calculated in two parts:

• Period 1: Up to 16.09.2026 - contribution will be calculated subject to the earlier wage ceiling of ₹15,000

• Period 2: From 17.09.2026 - contribution will be calculated subject to the revised wage ceiling of ₹25,000.

However, the two parts will not mean two filings for employers.

"The September 2026 wage month is to be dealt with through the applicable ECR filing mechanism in a SINGLE ECR, with the contribution calculated appropriately taking into account the two wage ceiling periods," the FAQs state.

How will this play out? The EPFO's own illustration in Question 7 of the FAQs has covered an employee earning ₹20,000 a month in three situations:

• an employee newly enrolled from September 17 because the old ceiling excluded them

• an existing EPF-and-EDLI member on ₹20,000 who now enters the EPS

• and an existing member who was contributing on the ₹15,000 cap and now moves to the full wage.

The following table shows how this employee's employer will contribute towards EPFO schemes for the month of September, as per the FAQs.

EPF, EPS and EDLI contributions for September 2026, on basic wages of ₹20,000

*Scenario B: employer's EPF share is 12% on ₹10,666.67 plus 3.67% on ₹9,333.33; the EPS share is nil for the first period and 8.33% on ₹9,333.33 thereafter.

"Existing arrangements for contribution on higher wages should continue to be governed by the applicable statutory provisions, scheme provisions and the terms under which such higher-wage contributions were permitted," it added.

Applied to September's split month, a capped member's wages would count as ₹8,000 for the first 16 days (on ₹15,000 ceiling) and ₹11,666.67 for the last 14 (on ₹25,000 ceiling), which adds up to ₹19,666.67, no matter whether the basic is ₹30,000, ₹50,000 or ₹1 lakh.

Based on the method explained in the FAQ, the tables below show September contributions in two situations for three basic wages (including DA),

September EPFO contributions on basic wages of ₹30,000

September contributions on basic wages of ₹50,000

September contributions on basic wages of ₹1,00,000

In the above table, the EPS column is nil for full-wage contributors because the FAQs make clear that "Membership of EPS is available only to such employees whose wages as on the date of joining or as on the date of implementation of new wage ceiling, do not exceed the wage ceiling (i.e.₹25,000 per month w.e.f 17.09.2026)."

Where a full-wage contributor is already an EPS member, the totals do not change; only the employer's 12% splits, with ₹1,638.23 going to the pension account and the balance to the PF account. Likewise, a capped member who is not in the EPS would see the employer's ₹2,360 go entirely to the EPF.

The higher ceiling would leave two benefit caps untouched. First, the government's support to the pension scheme. "The Government's EPS contribution remains limited to 1.16% of wages up to ₹15,000 per month", the FAQs said. Second, although wages up to ₹25,000 will now be taken for EDLI calculation, the FAQs said that "the maximum assurance benefit presently payable under EDLI remains ₹7 lakh."

For take-home pay, the FAQs provide a breathing room in September. It said that where the employee's deduction could not be processed in the current payroll, employers "will be permitted to defer recovery of the Employee Share (EE) to the next payroll cycle for the purposes of Member take home salary computation without seeking any formal relaxation or prior approval from the Inspector-cum-Facilitator".