EPFO explains EPS eligibility after ₹25,000 wage hike: Check which employees get pension coverage — and who don't

The EPFO wage ceiling has been raised to ₹25,000 a month in September 2026, bringing more employees under mandatory social security coverage. But how does this affect EPS pension eligibility, employer contributions, and employees who may not qualify for membership? Here’s what to know.

The monthly wage limit for mandatory Employees’ Provident Fund Organisation (EPFO) coverage was increased from ₹15,000 to ₹25,000, effective 17 September 2026.

According to the Ministry of Labour & Employment, the change is expected to extend statutory social security benefits to more than 51 lakh additional employees, particularly those earning between ₹15,000 and ₹25,000 a month who were previously outside mandatory coverage.

EPF and EPS are two distinct components of the retirement benefits framework. Now, EPFO has posted on X explaining the eligibility criteria for the Employees’ Pension Scheme (EPS).

According to EPFO’s post, “If your monthly salary is ₹25,000 or less, EPS membership is mandatory as per eligibility. If your monthly salary is more than ₹25,000, EPS membership is not mandatory.”

The post highlights how monthly wages and an employee’s previous EPS membership determine eligibility, as well as when contributions towards the pension scheme are required or may not be deducted.

What has EPFO clarified about EPS membership eligibility?

EPFO outlined two key conditions for determining EPS membership eligibility.

• If wages are ₹25,000 or less, EPS (Pension) membership is mandatory, and contributions shall be deducted.
• If wages are more than ₹25,000 and you were not an EPS member previously, you are not eligible for EPS membership, and contributions shall not be deducted.