The Ministry of Labour and Employment, Government of India, has issued an important Gazette Notification revising the wage ceiling to ₹25,000 per month for the purposes of Chapter III of the Code on Social Security, 2020.
The notification has been issued under the powers conferred by Section 2(89) of the Code on Social Security, 2020.
Notification for increasing wage ceiling to 25K .pdf
What does the Gazette Notification provide?
Through S.O. 5109(E) dated 17 September 2026, the Central Government has notified:
₹25,000 per month as the wage ceiling for the purposes of Chapter III of the Code on Social Security, 2020.
The revised wage ceiling is effective from the date of publication of the notification in the Official Gazette, i.e. 17 September 2026.
Notification for increasing wage ceiling to 25K .pdf
The notification also supersedes the earlier Ministry of Labour and Employment Notification S.O. 2702(E) dated 29 May 2026, while protecting actions already taken or omitted before such supersession.
Notification for increasing wage ceiling to 25K .pdf
Key Highlights
Revised wage ceiling: ₹25,000 per month
Applicable provision: Chapter III of the Code on Social Security, 2020
Notification No.: S.O. 5109(E)
Notification Date: 17 September 2026
Effective Date: 17 September 2026, being the date of publication in the Official Gazette
Earlier Notification: S.O. 2702(E) dated 29 May 2026 stands superseded, subject to the saving mentioned in the notification.
Notification for increasing wage ceiling to 25K .pdf
What does this mean for employers?
The notification is a significant development for establishments and employees covered under the provident fund framework contemplated under Chapter III of the Code on Social Security, 2020.
Employers should therefore closely review the potential impact on employee coverage, payroll structures, provident fund contributions and related compliance processes.
However, organisations should avoid making assumptions regarding the detailed operational mechanism solely on the basis of the wage-ceiling notification. Practical issues such as EPFO portal implementation, contribution methodology, treatment of existing members and other procedural requirements may require further clarification or administrative directions from EPFO.
Important Update – EPFO Headquarters Clarification Awaited
While the Central Government has formally notified the ₹25,000 wage ceiling with effect from 17 September 2026, a clear and formal response/operational clarification from EPFO Headquarters is still awaited regarding the practical implementation of the revised ceiling.
Accordingly, employers and HR/payroll teams are advised to keep a close watch on further EPFO circulars, instructions, FAQs or system-related updates before taking irreversible compliance or payroll decisions.
The Gazette itself clearly specifies the effective date; what is awaited is EPFO’s clarification on the implementation and operational aspects, and not the effective date of the Government notification.
Compliance Watch
This development may have a material impact on provident fund compliance for establishments having employees in the relevant wage range. Employers should therefore keep employee-wise wage data and PF membership records ready for review once detailed EPFO instructions are available.
LabourCodes360.com will continue to track the matter and update this article once a formal clarification or response is received from EPFO Headquarters.