After the Union Cabinet raised the wage ceiling for mandatory Employees’ Provident Fund (EPF) coverage from Rs 15,000 a month to Rs 25,000 a month, employees may also witness a change in their EPS contributions.
Earlier, people with basic pay plus dearness allowance of up to Rs 15,000 were covered under mandatory EPF provisions, subject to the applicable rule. Employees had to contribute 12 percent to the EPF account, which had to be matched by the employer. Out of the employer’s 12 percent contribution, 8.33 percent went towards the EPS funds of the employees.
Following the latest revision, the wage ceiling for mandatory EPF, EPS and EDLI coverage has been increased to Rs 25,000 a month. The revised ceiling took effect from September 17, 2026.
This may create some confusion regarding the contributions made towards the EPS account, particularly for employees whose wages are above Rs 15,000 but do not exceed Rs 25,000.
Employees with wages up to Rs 25,000
If an employee earns basic pay plus dearness allowance of Rs 25,000 or less, the EPS contribution becomes mandatory. Employees with wages ranging from Rs 15,000 to Rs 25,000 who were previously not a part of the EPS must be enrolled under the scheme.
Employees with wages over Rs 25,000
For an employee earning over Rs 25,000 in basic pay and dearness allowance, whether EPS contribution is mandatory or not depends on the past contributions.
Employees with no previous EPS contributions would not have to make contributions towards the EPS account, though they may continue to have EPF membership.
However, for employees with previous EPS contributions, it is mandatory to get EPS membership.
Therefore, for an employer, it is important to verify the employee’s Universal Account Number (UAN) to check previous EPS membership. If the UAN verification reveals previous contributions, EPS contributions would continue to be deducted in the future.
Grievances
If your employer is not contributing a portion of the PF towards the EPS account, you may lodge your complaint at the EPFiGMS portal.
— Visit https://epfigms.gov.in/
— Select the applicable option from among the following: PF member, an EPS pensioner, an employer, or others
— Submit the UAN number
— After OTP verification, submit your personal details
— Select the type of grievance
— Attach supporting documents, if necessary
Wrong or missed EPS deductions may lead to complications while settling claims in the future or making withdrawals from the funds. Therefore, it is better to contact EPFO as soon as an issue is detected related to contributions towards the EPF or EPS accounts.
