EPF Wage Ceiling Update

SalaryBox now supports the revised EPF wage ceiling of ₹25,000 per month, effective from 17 September 2026. The Government of India has increased the EPF wage ceiling from ₹15,000 to ₹25,000. SalaryBox has updated the PF calculation options so you can apply the new rules to your payroll.

Note: This change applies to all payroll processed from September 2026 onwards. If you have existing employees on the old 12% upto 1800 setting, you will need to update their PF settings to 12% upto 3000 or 12% variable.

What Changed #

On 16 September 2026, the Union Cabinet approved an increase in the EPF wage ceiling from ₹15,000 to ₹25,000 per month. This means:

• Employees earning up to ₹25,000 per month are now covered under mandatory EPF, EPS (pension), and EDLI (insurance).
• The maximum PF contribution at the ceiling increases from ₹1,800 to ₹3,000 per month for both employee and employer.
• Employer costs also increase due to higher EDLI and EPF Admin charges.

PF Calculation Options in SalaryBox #

In SalaryBox, you can set the PF calculation method for each employee under Salary Details. The following options are available for both Employer PF and Employee PF:

• 12% upto 3000 (New)
  PF is calculated at 12% of the new wage ceiling of ₹25,000, resulting in a fixed contribution of ₹3,000 per month. This is the recommended option for employees on the new EPF ceiling from September 2026.
• 12% upto 1800 (Old)
  PF was calculated at 12% of the old wage ceiling of ₹15,000, resulting in a fixed contribution of ₹1,800 per month. From September 2026, this option is greyed out for existing employees who were on this setting. These employees must now select either 12% upto 3000 or 12% variable. This option will not appear at all for new employees added from September onwards.
• 12% variable
  PF is calculated as 12% of the employee’s actual basic wages, with no ceiling cap. Use this option when PF is to be deducted on the full basic salary regardless of the wage ceiling.
• None
  No PF contribution is applied. This appears when no PF option has been selected for the employee, or if the employee is not covered under EPF.

Note: Before September 2026, existing employees will continue to see the 12% upto 1800 option. From September 2026 onwards, existing employees on the 12% upto 1800 setting must update their PF setting to either 12% upto 3000 or 12% variable. For new employees added from September 2026 onwards, the 12% upto 1800 option will not be available. Only 12% upto 3000, 12% variable, and None will be shown.

How to Update PF Settings for Existing Employees (Web) #

1. Log in to the SalaryBox web app at web.salarybox.in.
2. On My Team from the left menu. Click on the employee’s name to open their profile.
3. Go to Salary Details from the left panel.
4. Under Compliances, find Employer PF and Employee PF. The old 12% upto 1800 option will be greyed out. Select 12% upto 3000 or 12% variable as needed.
5. Click Update Details to save the changes.

Note: You need to update both Employer PF and Employee PF separately for each employee. The PF EDLI & Admin Charges will be recalculated automatically based on the new wage ceiling.

Note: You can go to My Team, apply the filter, and identify all employees whose PF settings need to be updated. September payroll will not run, and payroll reports will not be generated until the required EPF values are updated. 

How to Create a New Salary Template with the Updated PF Settings #

If you are creating a new salary template with the revised PF options, follow these steps:

1. Log in to the SalaryBox web app at web.salarybox.in.
2. Click Settings from the top-right corner.
3. Go to Salary Settings.
4. Click Create Salary Template.
5. Select Create a New Salary Template.
6. Enter the required salary template details and configure the Earnings section as needed.
7. Under Employer Contribution, find Employer PF.
8. Select ₹3,000 Limit or 12% Variable, depending on the PF calculation method you want to apply.
9. Configure the remaining salary components and deductions as required.
10. Review the salary template and click Save to create the new template.

Note: For new salary templates created from September 2026 onwards, the old ₹1,800 PF limit option will not be available. You can select ₹3,000 Limit or 12% Variable for Employer PF.

How to Update PF Settings in Bulk (Web) #

If you have multiple employees whose PF settings need to be updated, you can use the bulk update option from the Salary Details tab. This option is available only on the web app:

1. Log in to the SalaryBox web app at web.salarybox.in.
2. Go to My Team from the left menu and click on the Salary Details tab.
3. Apply the relevant filter to identify all employees whose PF settings need to be updated.
   
   Note: September payroll will not run, and payroll reports will not be generated until the required EPF values are updated.
   
4. Select the month from the date picker. Make sure you select September 2026 or later.
5. Click the Update Staff Salary button in the top-right corner. This will download an Excel template with all your staff members and their current salary and PF settings.
6. Open the downloaded file in Excel. Find the Employer PF Contribution and Employee PF Contribution columns. Click on a cell in these columns and select the new PF option from the dropdown.
7. Save the file and go back to the Update Staff Salary dialog. Upload the updated file to apply the changes.

Note: The dropdown options in the template depend on the month you selected. For months before September 2026, the template shows the old options (12% upto 1800 and 12% variable). From September 2026 onwards, the template shows only 12% upto 3000, 12% variable, and None. The old 12% upto 1800 option will not appear in the template for September onwards.

Note: Once the PF settings are updated, the payroll slip will automatically reflect the new PF amount based on the selected EPF option and applicable contribution.