EPF (Employees' Provident Fund): applicability, contribution and 2026 changes
EPF is the retirement savings scheme run by EPFO. It applies to establishments with 20 or more employees, with 12% employer and employee contributions.
Short answer
EPF (Employees' Provident Fund) is the compulsory retirement savings scheme administered by the Employees' Provident Fund Organisation (EPFO). Employers and employees each contribute 12% of wages. Since 21 November 2025 it operates under the Code on Social Security, 2020, and in September 2026 the wage ceiling for compulsory coverage was raised from ₹15,000 to ₹25,000 a month.
- Administered by
- EPFO
- Applicability
- Establishments with 20 or more employees (voluntary below)
- Contribution
- 12% employee plus 12% employer
- Wage ceiling
- ₹25,000 a month from 17 September 2026
How EPF works
Once an establishment employs 20 or more persons, it must register with EPFO, and smaller establishments can join voluntarily. Each employee gets a Universal Account Number (UAN). From the employer's 12% share, a portion goes to the Employees' Pension Scheme and the rest to the provident fund, while the employee's full 12% goes to the provident fund. Contributions are paid monthly through an electronic challan cum return, generally by the 15th of the following month. Employees earning above the wage ceiling at joining can be excluded, though many employers cover them voluntarily.
Changes under the Code on Social Security
The Code on Social Security, 2020 came into effect on 21 November 2025, consolidating the EPF Act with other social security laws, and the central rules followed in 2026. On 17 September 2026, the Ministry of Labour and Employment notified a wage ceiling of ₹25,000 per month for the provident fund chapter of the Code, replacing ₹15,000, effective the same day. This widens mandatory coverage and changes contribution calculations for employees earning between the two limits.
Why it matters for startups
Startups usually cross 20 employees within a couple of years, and coverage then applies to all eligible employees. Register promptly, link UANs, and revisit salary structures, because the Code's wider definition of wages and the new ceiling affect contribution amounts. Late deposits attract damages and interest.
Related services
Sources
- Employees' Provident Fund Organisation
- SCC Times: ₹25,000 wage ceiling notified under the Code on Social Security
Written by the Refogo Editorial Team from the official sources above and checked on 2026-10-31. Laws, rates and due dates change, and authorities often extend deadlines, so confirm your own case with a qualified professional. This is general information, not legal or tax advice. Read our editorial policy or report an error to support@refogo.com.
Common questions
Is EPF mandatory for startups with fewer than 20 employees?
No, but the employer can opt for voluntary coverage. Once 20 employees are reached, registration is compulsory.
What is the current EPF wage ceiling?
₹25,000 per month, notified on 17 September 2026 under the Code on Social Security, replacing ₹15,000.
When is the EPF contribution due?
Generally by the 15th of the following month, through the electronic challan cum return.