The Cabinet has approved the EPFO Wage ceiling starting from Rs.15,000 to Rs. 25,000.25,000 effective September 17, 2026, under the Social Security Act 2020 by Shri. Narendra Modi (Honourable Prime Minister of India). Therefore, as the example calculation is provided below, we must revise the salary structure for all working employees starting from September 2026.
If the gross salary is ₹15,000,
EPF
Basic + DA should be considered as 70%.
15000 * 70 % = 10500
10500 * 12 % = 1260 (to be deducted from Employee)
10500 * 13% = 1365 (to be borne by Employer)
ESIC
15000 * 0.75% = 113 (to be deducted from Employee)
15000 * 3.25 % = 487.5 (to be borne by the Employer)
Therefore, total CTC = 15000 + 1365 (PF) + 487.5 (ESI)