India HR Compliance Update: October 2026
Last updated 21 October 2026
This edition covers September and October 2026. All figures were checked against EPFO, PIB, the Labour Bureau and ESIC on 21 October 2026.
Summary
The provident fund wage ceiling is now ₹25,000 a month. It took effect on 17 September 2026 under notification S.O. 5109(E), replacing the ₹15,000 ceiling that had applied since September 2014. September 2026 is a split month: contributions up to 16 September use the old ceiling and contributions from 17 September use the new one, all in a single ECR.
Three other items need action before the end of October or November:
- EPFO’s Employees’ Enrolment Campaign 2026 closes on 31 October 2026. It lets employers enrol staff left out of EPF between 1 April 2009 and 31 March 2026 with the employee share waived.
- The central variable dearness allowance (VDA) went up from 1 October 2026, so minimum wages in central-sphere employments rose.
- The TDS statement on salaries for July to September (Form 138, formerly Form 24Q) is due by 31 October 2026, and statutory bonus for 2025-26 must be paid by 30 November 2026 for a March year-end.
Statutory deadline calendar: October and November 2026
| Due | Obligation | Applies to |
|---|---|---|
| 7 Oct / 7 Nov | TDS and TCS deposit for the previous month | All deductors |
| 15 Oct | PF contribution and ECR for September 2026: one ECR, two wage ceilings (see below) | Establishments covered under EPF |
| 15 Oct / 15 Nov | ESI contribution for the previous month | Establishments covered under ESI |
| 15 Nov | PF contribution and ECR for October 2026, the first full month at the ₹25,000 ceiling | Establishments covered under EPF |
| 31 Oct | Employees’ Enrolment Campaign 2026 closes | Employers with staff left out of EPF between 1 Apr 2009 and 31 Mar 2026 |
| 31 Oct | Quarterly TDS statement on salaries, July to September (Form 138, formerly 24Q) | All employers deducting TDS on salary |
| Monthly | Professional tax, varies by state | Maharashtra, Karnataka, WB, Gujarat, others |
| 30 Nov | Statutory bonus for 2025-26, within eight months of the close of the accounting year | Employers covered by the bonus provisions of the Code on Wages, March year-end |
Dates that fall on a Sunday or a bank holiday move to the next working day. State professional tax calendars differ, so confirm yours rather than assuming one state’s date.
Rate and threshold changes
Provident fund wage ceiling: now ₹25,000. Notification S.O. 5109(E) dated 17 September 2026 raised the statutory wage ceiling from ₹15,000 to ₹25,000 a month with effect from 17 September 2026. Contribution rates are unchanged at 12% employee and 12% employer. Employees earning up to ₹25,000 who were outside EPF or outside the pension scheme (EPS) must now be enrolled, and EPS membership starts from 17 September 2026. Contributing on wages above ₹25,000 is not mandatory; existing higher-wage contributions continue under the scheme rules.
ESI: unchanged. Coverage applies to wages up to ₹21,000 a month, or ₹25,000 for a person with a disability, with 0.75% from the employee and 3.25% from the employer. ESIC had issued no circular changing the wage limit as of mid-October 2026.
Central VDA: up 6.62 points from 1 October 2026. The Labour Bureau order dated 30 September 2026 revises the variable dearness allowance for central-sphere scheduled employments, after the average CPI-IW (base 2016=100) rose from 424.80 to 431.42. As one example, the minimum wage for unskilled agricultural work in Area A is now ₹537 a day (₹333 basic plus ₹204 VDA). The order is issued under section 69(2) of the Code on Wages, 2019. Check the rate for your own employment and area before the October payroll closes.
New notifications and what they actually mean
September payroll: one ECR, two wage ceilings
EPFO’s FAQs on the ceiling revision say September 2026 is filed in a single ECR, with contributions worked out separately for two periods: 1 to 16 September on the ₹15,000 ceiling and 17 to 30 September on the ₹25,000 ceiling. For an existing member earning ₹20,000 who was contributing on ₹15,000, September EPF wages are ₹8,000 (₹15,000 × 16/30) plus ₹9,333.33 (₹20,000 × 14/30), or ₹17,333.33.
Where the extra employee share could not be deducted from September salary for staff newly brought into coverage, EPFO allows employers to recover it in the next payroll. The contribution still belongs to the September ECR. If your September ECR was filed on the old ceiling, review it with your payroll team now.
The EPF enrolment campaign closes on 31 October
The Employees’ Enrolment Campaign 2026 ran from 1 July and closes on 31 October 2026. It covers employees who were eligible for EPF but left out between 1 April 2009 and 31 March 2026. Where the employee’s share was never deducted from wages, it is waived. The employer pays its own share with interest and administrative charges, plus lump-sum damages of ₹100. Enrolment is online through the EPFO employer portal, with face-authentication UAN generation and an ECR-linked TRRN.
TDS: the July to September statement is now Form 138
Under the forms notified with the Income-tax Act, 2025, the quarterly TDS statement on salaries is Form 138, which replaces Form 24Q. The return for July to September 2026 is due by 31 October 2026.
Statutory bonus: pay by 30 November
Under the Code on Wages, statutory bonus must be paid within eight months of the close of the accounting year. For a 31 March 2026 year-end, that is 30 November 2026. Many employers pay it with Diwali; either way, the 30 November limit applies.
What to watch this month
The PF ceiling is the change with the widest effect on payroll. Check three things before the October payroll closes: that everyone earning up to ₹25,000 is in EPF and EPS, that September’s ECR used the split calculation, and that offer letters and salary structures reflect the higher employer cost.
Reports of a higher ESI wage limit have circulated, but no ESIC circular has been issued. Keep the ₹21,000 limit until one is.
Looking ahead to November
- 21 November 2026 marks one year since the four Labour Codes came into force.
- State rules under the Labour Codes: several states are still finalising theirs.
- Any ESIC circular on the wage limit.
- The October ECR, due 15 November, is the first full month on the ₹25,000 ceiling.
Frequently asked questions
Do we need to file two ECRs for September 2026?
No. EPFO says September 2026 goes in a single ECR, with contributions worked out on ₹15,000 for 1 to 16 September and on ₹25,000 for 17 to 30 September.
Must every employee now contribute PF on ₹25,000?
No. Contributions follow actual PF wages up to the ₹25,000 ceiling. Contributing on wages above ₹25,000 is not mandatory, and existing higher-wage contributions continue under the scheme rules.
When does the EPF enrolment campaign end?
On 31 October 2026. It covers employees left out of EPF between 1 April 2009 and 31 March 2026.
Sources
- EPF wage ceiling: Ministry of Labour and Employment notification S.O. 5109(E) dated 17 September 2026, and EPFO “FAQs on revision of EPFO statutory wage ceiling” (September 2026)
- Employees’ Enrolment Campaign 2026: PIB release ID 2300475, 17 August 2026
- Central VDA: Labour Bureau order File No. 6/1/2026-VDA dated 30 September 2026, published by the Chief Labour Commissioner
- ESI coverage and wage limit: esic.gov.in, checked 21 October 2026
- Form 138 and due dates: Income Tax Department FAQs on forms under the Income-tax Rules, 2026
- Bonus time limit: Code on Wages, 2019
Previous edition: India HR Compliance Update: August 2026. For help applying these changes, see TMS payroll outsourcing and statutory compliance services.