Skip to main content

EPFO Turns 74: WhatsApp Services, Automatic Settlement and the ₹25,000 Wage Ceiling

3 November 2026 · Kanoonwale Bhaiya

On 1 November 2026, at the 74th Foundation Day of the Employees' Provident Fund Organisation, the Union Labour Minister launched a WhatsApp service for subscribers and automatic settlement of small inoperative accounts; for employers, however, the more consequential matter remains the ₹25,000 wage ceiling now in force.

What EPFO announced on its 74th Foundation Day

Addressing the celebration in New Delhi on Sunday, 1 November 2026, the Union Labour and Employment Minister, Dr Mansukh Mandaviya, launched EPFO's verified WhatsApp service. Subscribers can now view their PF balance, their latest five transactions and their passbook information on WhatsApp, and can also receive personalised guidance in completing requirements connected with the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY). The stated objective is to make routine services available on a familiar mobile platform and to reduce the need to visit EPFO offices.

The second announcement is of greater practical value to workers who have changed jobs and lost track of small balances. Where an inoperative EPF account is Aadhaar-verified and carries a balance of up to ₹1,000, the member will not be required to file an individual claim; EPFO will initiate settlement automatically after the prescribed identity and bank-account verification. Approximately one lakh accounts, involving about ₹5 crore, are expected to benefit.

The Minister also placed the organisation's scale on record: a corpus of ₹32 lakh crore built from the contributions of more than 8 crore members. EPFO reported that, following its CITES 2.01 technology upgrade, the average claim settlement time fell to 2.57 days in October 2026. For employers, these measures signal a clear direction: faster, more automated and more transparent processing on the member side, which in turn depends on accurate and timely data from the establishment side.

The ₹25,000 wage ceiling: the change employers are still absorbing

By Gazette Notification S.O. 5109(E), the Ministry of Labour and Employment raised the monthly wage ceiling for Chapter III of the Code on Social Security, 2020 from ₹15,000 to ₹25,000, with effect from 17 September 2026. The earlier ceiling had stood at ₹15,000 since September 2014, so this is the first revision in twelve years and it reaches a large number of establishments that had settled into a stable payroll routine.

The consequences operate on three levels. First, employees whose PF wages fall between ₹15,001 and ₹25,000 and who were not members of the Fund are now required to be enrolled, with EPF, EPS and EDLI coverage from 17 September 2026. Second, existing members whose contributions were restricted to ₹15,000 will now contribute on wages of up to ₹25,000, so that the maximum employee contribution at 12 per cent rises from ₹1,800 to ₹3,000 per month, with a matching increase on the employer's side. Third, where an establishment already contributes on actual wages above the ceiling, the total outgo is unchanged, but a larger portion of the employer's share is directed to the Pension Scheme, up to ₹2,083 instead of ₹1,250.

Two clarifications deserve emphasis. The ESIC wage ceiling has not been touched and continues to stand at ₹21,000 per month. And the definition of wages under the Code on Social Security, together with the rule that excluded allowances cannot exceed half of total remuneration, has applied since the Labour Codes came into force on 21 November 2025; an establishment that has not yet reviewed its salary structure against that rule will find the new ceiling makes the exercise more pressing, because the base on which contributions are computed is now both wider and higher.

The dates and the steps that matter now

Because the ceiling changed in the middle of September, EPFO extended the due date for the September 2026 Electronic Challan-cum-Return and the corresponding contributions from 15 October to 31 October 2026. That relief applied only to the September wage month. The October 2026 return and contributions fall due on the usual date, 15 November 2026, and will be the first full month computed entirely on the higher ceiling. The Labour Codes themselves complete their first year of operation on 21 November 2026, and employers can expect closer attention to wage definitions and contribution data as that anniversary passes.

In practice, an establishment should begin by identifying every employee whose PF wages lie between ₹15,001 and ₹25,000 and who is not yet a member, and then generate or link the Universal Account Number, complete Aadhaar, PAN and bank verification, and obtain e-nominations. Payroll should next be re-run for existing members whose contributions were capped at ₹15,000, taking care to apply the split calculation for September, which was part on the old ceiling and part on the new. Establishments that contribute on actual wages should re-split the employer's share between the Provident Fund and the Pension Scheme. Salary structures, offer letters and PF policies should then be audited against the statutory definition of wages, and principal employers should confirm that their contractors are enrolling and remitting for contract workers who now fall within the higher band.

Finally, employees should be told, in plain terms, why their take-home pay has changed and that the additional deduction increases their own provident fund and pension entitlement. A short written communication at this stage prevents disputes later, and it is considerably less costly than responding to a grievance or a notice.

How Kanoon Mitra Solutions can help

Kanoon Mitra Solutions, your partner in labour law, assists employers with PF and ESI registration, contribution and return compliance, salary-structure review under the Labour Codes, and correct handling of the new wage ceiling. To discuss your establishment's position before the 15 November due date, write to kanoonmitrasolutions@gmail.com or visit www.kanoonmitrasolutions.com.

This article is intended for general information and does not constitute legal advice. Employers should verify the position against the official notifications and EPFO circulars applicable to their establishment.

Sources

Labels:

Comments

Post a Comment

Popular posts from this blog

Maintenance Ka Kanoon: Har Baar Mard Hi Galat Nahi Hota!

Ma intenance Ka Kanoon: Har Baar Mard Hi Galat Nahi Hota! Explained by Advocate Prabal Bhandari A must-read for anyone navigating family law or fighting a maintenance case. In India, maintenance is often seen as a husband’s financial duty, especially after separation or divorce. But the reality is more nuanced—and the law, though empathetic to women, also acknowledges the rights and limitations of men . In my practice as an advocate, I’ve come across countless cases where men are forced to pay maintenance despite facing genuine hardships. So the question arises: Is a man always liable to pay maintenance? The answer is no — not always . Indian courts have clearly laid down instances where a man can be relieved of this obligation , provided he has substantial and honest reasons. Let’s break this down with clarity and support from landmark judgments. One of the key principles courts rely on is "sufficient cause" . In the case of C. Ali v. State of Kerala , the court observ...
Post a Comment
Read more

When Justice Looks Beyond Quantity: A Thoughtful Bail Order in Davinder Singh’s Case

  When Justice Looks Beyond Quantity: A Thoughtful Bail Order in Davinder Singh’s Case By Advocate Prabal Bhandari In a significant bail ruling dated 5th May 2025 , the Punjab & Haryana High Court granted regular bail to Davinder Singh , who had been in jail for over a year and 23 days in connection with a drug case under the NDPS Act, 1985 . But this wasn’t just another routine bail matter. This case tells us a deeper story — one that balances the letter of the law with the spirit of justice . What Was the Case About? Davinder Singh was arrested along with three others while traveling in a car. During a police checkpoint, the car was stopped and searched. The police found 255 grams of intoxicant powder hidden near the dashboard of the car. The NDPS Act classifies such an amount as "commercial quantity" , which usually makes getting bail extremely difficult. However, Davinder was not driving the car. He was just sitting in the back seat. The Court's Re...
Post a Comment
Read more

Janaki” and Judicial Wisdom: A Constitutional Lens on Artistic Freedom and CBFC's Role

Janaki” and Judicial Wisdom: A Constitutional Lens on Artistic Freedom and CBFC's Role By Advocate Prabal Bhandari www.prabalbhandari.com   In a moment that resonates with constitutional clarity and judicial maturity, the Kerala High Court reminded the nation this week that art is not to be shackled by arbitrary gatekeeping , especially not when the freedom of expression guaranteed under Article 19(1)(a) is at stake. The matter in question arose from a legal challenge filed by M/s Cosmos Entertainments , the production house behind the upcoming Malayalam film “ JSK: Janaki v State of Kerala ” , starring Union Minister Suresh Gopi . The controversy? The Central Board of Film Certification (CBFC) allegedly raised informal objections to the use of the name “Janaki” —claiming it refers to Goddess Sita and could, therefore, hurt religious sentiments. This objection, as presented by the Deputy Solicitor General of India , was purportedly based on the CBFC's interpretation of...
Post a Comment
Read more