As per the Government of India / Union Cabinet decision dated 16 September 2026, the EPFO wage ceiling has been increased from ₹15,000 to ₹25,000 per month.
What changed
From September 2026 payroll periods onward, the statutory wage ceiling used for PF, EPS, and EDLI is ₹25,000 per month, up from ₹15,000.
Payroll for August 2026 and earlier still uses the ₹15,000 ceiling. Asanify picks the ceiling from the payrun month and year, not from when you click run payroll.
How Asanify calculates PF from September 2026
PF wages cap: For most employees, PF wages are capped at ₹25,000 per month when computing contributions, EPS, EDLI, and related admin charges.
Actual PF wages: Employees already on actual (uncapped) PF wages above the ceiling are not forced down to ₹25,000; their existing actual-PF setup still applies.
Higher contributions: Employer and employee PF amounts typically increase for anyone whose PF wages were previously limited to the ₹15,000 cap.
EDLI: The employer EDLI contribution cap is ₹125 per month from September 2026 (previously ₹75).
After you process payroll, use the same period when you generate the EPF ECR file and reconcile with the EPFO portal.
Salary structure and CTC
When you structure CTC or revise salary in Asanify, the employer PF line in the breakdown reflects the new cap: min(12% of PF-eligible components, ₹36,000 per year)—that is 12% of ₹25,000 × 12 months. You will see this in salary structure views and in individual salary updates and bulk revision flows.
Updating structures before your first September 2026 payroll helps payslips and cost projections match what payroll will compute.
Review PF coverage (HAS_PF)
The ceiling change affects who is “above the cap” for PF purposes.
Employees with PF wages between ₹15,001 and ₹25,000 who are marked not covered under PF (HAS_PF = No) because they were above the old ₹15,000 ceiling may now need to be enrolled in PF. Asanify does not automatically flip HAS_PF for that band—you should review statutory settings employee by employee.
On Run Payroll, check the HAS_PF column on the earnings or review screen, or correct settings before you finalize the payrun. If you maintain salaries in bulk, refresh data via salary upload after you change PF flags.
First payroll from September 2026 onward
The first time your company runs regular payroll (or certain termination payrolls) for September 2026 or later, Asanify shows a short summary of this ceiling change and asks for a one-time confirmation per company before the run continues. That prompt is informational—it does not replace reviewing employee PF settings or your EPFO filing obligations.
If payroll is not set up yet, complete payroll setup first so September 2026 runs use the correct ceiling from the start.
Additional information
Termination payroll
Full-and-final and termination payroll for periods from September 2026 onward use the ₹25,000 ceiling the same way as regular payroll for that month-year.
Tip: Before your first September 2026 payrun, spot-check a few employees who were PF-capped at ₹15,000 and anyone in the ₹15,001–₹25,000 range with HAS_PF = No, then compare payslips to your ECR.