PF Compliance for Employers in India: 2026 Guide to the ₹25,000 Wage Ceiling
Quick answer: PF compliance means registering your establishment with EPFO, enrolling eligible employees, deducting and depositing contributions every month, and filing the monthly return (ECR) by the 15th. Since 17 September 2026 the PF wage ceiling is ₹25,000 a month: every employee earning up to that amount must be a member of EPF, EPS and EDLI. The employee pays 12% of PF wages; the employer pays 12% (8.33% to the pension scheme up to the ceiling, the rest to EPF) plus 0.5% EDLI and 0.5% admin charges.
What PF compliance means in 2026
Provident fund covers three schemes run by the Employees’ Provident Fund Organisation (EPFO): the Employees’ Provident Fund (EPF), the Employees’ Pension Scheme (EPS) and the Employees’ Deposit Linked Insurance (EDLI). Since the Labour Codes came into force on 21 November 2025, mandatory PF coverage sits under Chapter III of the Code on Social Security, 2020.
For an employer, compliance comes down to five things: register the establishment, enrol every eligible employee with a UAN, deduct the employee’s share correctly, deposit both shares on time, and keep the monthly ECR and records accurate.
Who must register for PF?
An establishment with 20 or more employees must register with EPFO. A smaller business can register voluntarily, and many do so to compete for talent.
Within a covered establishment, every employee whose PF wages are up to ₹25,000 a month must be enrolled in EPF, EPS and EDLI. Contract workers deployed through a contractor are covered too; check that the contractor deposits their PF, because the principal employer can be held responsible if it does not.
PF contribution rates and the ₹25,000 ceiling
Contributions are worked out on PF wages, which are basic pay plus dearness allowance. The table shows EPFO’s own figures for a full month from October 2026:
| Monthly PF wages (Basic + DA) | Employee EPF (12%) | Employer EPS (8.33%) | Employer EPF | EDLI (0.5%) | Admin (0.5%) |
|---|---|---|---|---|---|
| ₹10,000 | ₹1,200 | ₹833 | ₹367 | ₹50 | ₹50 |
| ₹15,000 (old ceiling) | ₹1,800 | ₹1,250 | ₹550 | ₹75 | ₹75 |
| ₹20,000 | ₹2,400 | ₹1,666 | ₹734 | ₹100 | ₹100 |
| ₹25,000 (new ceiling) | ₹3,000 | ₹2,083 | ₹917 | ₹125 | ₹125 |
| ₹35,000 (above ceiling) | ₹3,000 | ₹0 | ₹3,000 | ₹125 | ₹125 |
In the last row the employee joined above the ceiling, so EPS membership does not apply and the employer’s full 12% goes to EPF. Contributing on wages above ₹25,000 is not mandatory; existing higher-wage contributions continue under the scheme rules. EPFO’s minimum admin charge is ₹500 a month for an establishment with at least one contributing member.
The monthly PF cycle
- Before payroll closes: enrol new joiners, link or generate UANs and check KYC.
- Payroll: deduct 12% of PF wages from each covered employee.
- By the 15th of next month: file the ECR on the EPFO employer portal and pay the challan.
- Exits: mark the date of exit so the employee can withdraw or transfer.
- Every month: reconcile the ECR with payroll so contributions match wages.
Late payment attracts interest and damages, and deducting an employee’s share without depositing it is treated far more seriously than a simple delay.
What changed in September and October 2026
- New ceiling: notification S.O. 5109(E) dated 17 September 2026 raised the ceiling from ₹15,000, where it had stayed since September 2014.
- September was a split month: one ECR, with contributions on ₹15,000 for 1 to 16 September and on ₹25,000 for 17 to 30 September. Where the extra employee share could not be deducted in September, EPFO allows recovery in the next payroll.
- New members: employees earning between ₹15,000 and ₹25,000 who were outside EPF or outside EPS had to be enrolled from 17 September 2026.
- Enrolment campaign: EPFO’s Employees’ Enrolment Campaign 2026 lets employers enrol staff left out of PF between 1 April 2009 and 31 March 2026, with the employee share waived. It closes on 31 October 2026. See our EPF enrolment campaign guide.
Common PF compliance mistakes
- Still applying the old ₹15,000 ceiling in payroll software.
- Leaving out employees who crossed into the ₹15,000 to ₹25,000 band.
- Paying the employer’s full share to EPF for an employee who should be in EPS.
- Missing contract workers deployed through a contractor.
- Depositing late, or deducting the employee share but not depositing it.
PF compliance checklist
- Establishment registered with EPFO, with the employer portal and digital signature active.
- Every eligible employee enrolled, with UAN and KYC complete.
- Payroll set to the ₹25,000 ceiling and the 8.33% EPS split.
- ECR and challan filed by the 15th every month.
- Contractors’ PF deposits checked for workers at your premises.
- Records kept for inspection.
Use our PF calculator to check contributions for any salary, and read the October 2026 compliance update for all this month’s deadlines.
Frequently asked questions
What is PF compliance?
It is the employer’s legal duty to register with EPFO, enrol eligible employees, deduct and deposit PF contributions and file the monthly ECR on time.
What is the PF wage ceiling in 2026?
₹25,000 a month from 17 September 2026. Earlier it was ₹15,000.
Which employers must register for PF?
Establishments with 20 or more employees. Smaller establishments can register voluntarily.
When is the PF return due?
The ECR and payment for a month are due by the 15th of the following month.
Can PF compliance be outsourced?
Yes. A payroll or compliance provider can run enrolment, monthly filings and reconciliations, but the legal responsibility stays with the employer.
Sources: notification S.O. 5109(E) dated 17 September 2026; EPFO “FAQs on revision of EPFO statutory wage ceiling” (September 2026); PIB release 2300475 (17 August 2026) on the Employees’ Enrolment Campaign 2026. This page explains the law in general terms; take advice for specific cases.
Stay PF compliant with TMS
TMS runs PF for employers every month, from enrolment to ECR and reconciliation:
- Payroll outsourcing: salaries, PF, ESIC, PT and TDS processed accurately and on time.
- Statutory compliance: PF, ESIC and labour-law filings kept audit-ready.
- HR outsourcing: payroll plus the wider HR function under one team.