Summary: The Ministry of Labour and Employment has issued two notifications under the Code on Social Security, 2020, establishing different wage limits for different statutory purposes. Notification S.O. 5109(E), dated 17 September 2026, specifies ₹25,000 per month as the wage ceiling for Chapter III of the Code, superseding S.O. 2702(E), dated 29 May 2026, subject to the stated saving provision. Notification G.S.R. 890(E), dated 15 October 2026, separately amends Paragraph 4(2) of the Employees’ Pension Scheme, 2026, by expressly referring to wages up to ₹15,000 per month for the relevant Central Government contribution. Although the second notification was published in October, it specifies 17 September 2026 as its effective date. The distinction is important for employers, payroll professionals and HR departments. The ₹25,000 ceiling under Chapter III does not automatically increase the wage base for the Central Government’s EPS contribution to ₹25,000. Likewise, the ₹15,000 limit under the EPS amendment should not be treated as a universal ceiling for all provident fund and pension contributions. The article compares both notifications, explains their effective dates and statutory scope, provides illustrative payroll calculations for employees earning ₹12,000, ₹18,000, ₹25,000 and ₹30,000 per month, and identifies compliance checks relating to payroll configuration, employee eligibility and documentation. Actual contributions remain subject to the complete applicable scheme provisions and employee-specific circumstances.
- Introduction
- 1. Notification No. S.O. 5109(E): Wage Ceiling Revised to ₹25,000
- What does the notification provide?
- What is the significance of this change?
- Effective date
- 2. Notification No. G.S.R. 890(E): Central Government Contribution Under EPS Limited to ₹15,000
- What does the notification provide?
- Why is this amendment important?
- 3. Side-by-Side Comparison of Both Notifications
- 4. Does the ₹25,000 Wage Ceiling Mean That EPS Contribution Will Also Be Calculated on ₹25,000?
- 5. Illustrative Examples for HR and Payroll Professionals
- Example 1: Employee earning ₹12,000 per month
- Example 2: Employee earning ₹18,000 per month
- Example 3: Employee earning ₹25,000 per month
- Example 4: Employee earning ₹30,000 per month
- 6. What Should Employers and Payroll Teams Review?
- 1. Review the applicable wage ceiling
- 2. Keep the PF and EPS provisions distinct
- 3. Review payroll configuration and contribution logic
- 4. Review employee categories and eligibility
- 5. Maintain an audit trail
- 7. Does the EPS Amendment Change the Entire Pension Scheme?
- 8. Important Legal and Interpretative Clarification
- Conclusion: Two Notifications, Two Different Purposes
- Extract of Relevant Notifications
Introduction
The Ministry of Labour and Employment has issued two important notifications concerning provident fund and pension contributions under the Code on Social Security, 2020. While both notifications relate to social security, they address different legal and financial aspects of the system.
The first notification, S.O. 5109(E), dated 17 September 2026, revises the wage ceiling to ₹25,000 per month for the purposes of Chapter III of the Code on Social Security, 2020.
The second notification, G.S.R. 890(E), dated 15 October 2026, amends Paragraph 4(2) of the Employees’ Pension Scheme, 2026, and expressly limits the relevant Central Government contribution to wages up to ₹15,000 per month. Although published on 15 October 2026, the amendment expressly takes effect from 17 September 2026.
These notifications should therefore be read together, but they should not be interpreted as establishing a single, uniform wage ceiling for all provident fund and pension calculations.
The central distinction is this: the ₹25,000 wage ceiling under Chapter III and the ₹15,000 wage limit for the Central Government’s contribution under the EPS amendment serve different purposes.
1. Notification No. S.O. 5109(E): Wage Ceiling Revised to ₹25,000
What does the notification provide?
The Ministry of Labour and Employment issued Notification No. S.O. 5109(E) on 17 September 2026, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii).
Exercising its powers under clause (89) of Section 2 of the Code on Social Security, 2020, the Central Government notified ₹25,000 per month as the wage ceiling for the purposes of Chapter III of the Code.
The notification also supersedes the earlier notification, S.O. 2702(E), dated 29 May 2026, subject to its express saving for things already done or omitted before the supersession.
What is the significance of this change?
The notification establishes ₹25,000 per month as the applicable wage ceiling for the purposes specified in Chapter III. It is a change in the statutory wage ceiling relevant to the provident fund framework under the Code.
However, the notification must be interpreted within its stated scope. It does not, by itself, declare that every contribution or benefit under every social security scheme must be calculated on wages up to ₹25,000.
In particular, it does not amend the Employees’ Pension Scheme, 2026 directly. The pension-related position must be examined separately under the second notification.
Effective date
The notification provides that the revised wage ceiling takes effect from the date of its publication in the Official Gazette, namely 17 September 2026.
Accordingly, 17 September 2026 is the operative date specified by this notification.
2. Notification No. G.S.R. 890(E): Central Government Contribution Under EPS Limited to ₹15,000
What does the notification provide?
The Ministry issued Notification No. G.S.R. 890(E) on 15 October 2026, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i).
The notification invokes clause (b) of sub-section (1) of Section 15 of the Code on Social Security, 2020, and amends Paragraph 4(2) of the Employees’ Pension Scheme, 2026.
It makes two specific textual amendments:
- The words “such sum as may be specified by the Central Government” are replaced with “wages upto rupees fifteen thousand (Rs. 15,000/-) per month”.
- The words “and the Central Government” are omitted from the first proviso to Paragraph 4(2).
The notification expressly states that it comes into force on 17 September 2026, notwithstanding its publication on 15 October 2026.
Why is this amendment important?
The amendment makes the ₹15,000 monthly wage limit explicit in the relevant provision governing the Central Government’s contribution under the EPS framework.
Consequently, the revision of the wage ceiling to ₹25,000 under Chapter III should not be interpreted as automatically increasing the wage base for the Central Government’s EPS contribution to ₹25,000.
The second notification addresses the pension scheme specifically and establishes a separate limit for the contribution covered by Paragraph 4(2).
It is also important to note that the amendment changes the wording of the first proviso. That change should be read alongside the principal provision and the complete scheme when determining the treatment of particular employee categories or contribution arrangements.
The notification itself does not prescribe a new contribution percentage. It specifies the wage limit and changes the wording of the relevant provision.
3. Side-by-Side Comparison of Both Notifications
| Particulars | Notification S.O. 5109(E) | Notification G.S.R. 890(E) |
|---|---|---|
| Date of notification | 17 September 2026 | 15 October 2026 |
| Gazette reference | No. 4918 | No. 819 |
| Relevant legislation | Code on Social Security, 2020 | Code on Social Security, 2020 |
| Specific provision | Section 2, clause (89) | Section 15(1)(b) |
| Subject | Wage ceiling for Chapter III | Amendment to Paragraph 4(2) of EPS, 2026 |
| Wage limit specified | ₹25,000 per month | ₹15,000 per month |
| Principal purpose | Establishes the wage ceiling for Chapter III | Limits the relevant Central Government contribution to wages up to ₹15,000 |
| Effective date | 17 September 2026 | 17 September 2026 |
| Nature of change | Revises the applicable wage ceiling and supersedes the earlier notification | Amends the pension scheme’s contribution provision and first proviso |
The two figures are not contradictory. They relate to different provisions and different purposes.
4. Does the ₹25,000 Wage Ceiling Mean That EPS Contribution Will Also Be Calculated on ₹25,000?
Yes but the two notifications do not support that interpretation.
The first notification revises the wage ceiling for Chapter III of the Code. The second specifically amends the EPS provision to state that the relevant Central Government contribution is limited to wages up to ₹15,000 per month.
For example, if an employee’s relevant monthly wages are ₹25,000, the following distinction applies:
- Chapter III wage ceiling: ₹25,000 per month under S.O. 5109(E).
- Wage limit for the relevant Central Government EPS contribution: ₹15,000 per month under G.S.R. 890(E).
The employee’s wages being within the ₹25,000 ceiling does not, on its own, establish that the Central Government’s EPS contribution must be calculated on the full ₹25,000.
Similarly, the ₹15,000 limit stated in the EPS amendment should not automatically be treated as the wage ceiling for every purpose under Chapter III.
The applicable provision, the type of contribution and the employee’s circumstances must be considered separately.
5. Illustrative Examples for HR and Payroll Professionals
The following examples demonstrate the distinction between the two notifications. They are illustrations of the wage limits, not determinations of an individual employee’s complete contribution liability.
| Monthly wages | Employee 12% | Employer: EPS 8.33% | Employer: EPF account | Central Govt (1.16%, wages limited to ₹15,000) |
|---|---|---|---|---|
| ₹12,000 | ₹1,440 | ₹1,000 | ₹440 | ₹139 |
| ₹18,000 | ₹2,160 | ₹1,499 | ₹661 | ₹174 |
| ₹25,000 | ₹3,000 | ₹2,083 | ₹917 | ₹174 |
Example 1: Employee earning ₹12,000 per month
The employee’s wages are below both specified limits.
- Chapter III wage ceiling: ₹25,000.
- EPS Central Government contribution wage limit: ₹15,000.
The revised Chapter III ceiling does not create a difference between the two limits for this employee’s wage level.
The actual contributions would still depend on the applicable scheme provisions and the employee’s eligibility.
Example 2: Employee earning ₹18,000 per month
The employee’s wages are below the ₹25,000 Chapter III ceiling but exceed the ₹15,000 limit specified for the relevant Central Government EPS contribution.
For the purposes addressed by the two notifications:
- The applicable Chapter III wage ceiling is ₹25,000.
- The wage base for the relevant Central Government EPS contribution remains limited to ₹15,000.
This example illustrates why the two limits must not be conflated.
Example 3: Employee earning ₹25,000 per month
This example highlights the distinction most directly.
The employee earns exactly ₹25,000 per month, which matches the revised Chapter III wage ceiling.
However, the EPS amendment specifies wages up to ₹15,000 per month for the relevant Central Government contribution.
The employer should therefore not assume that the Central Government’s EPS contribution automatically increases in proportion to the revised Chapter III wage ceiling.
Example 4: Employee earning ₹30,000 per month
The employee’s wages exceed both the ₹25,000 Chapter III wage ceiling and the ₹15,000 EPS contribution limit.
These notifications alone do not determine the complete treatment of this employee. The employer must examine the applicable coverage provisions, the employee’s membership status, the relevant scheme rules and any other applicable directions.
Neither notification should be read as a standalone determination of all contribution obligations for an employee earning above the prescribed limits.
6. What Should Employers and Payroll Teams Review?
The two notifications have practical implications for HR, payroll, finance and social security compliance teams.
1. Review the applicable wage ceiling
Employers should identify the wage ceiling applicable under Chapter III of the Code on Social Security, 2020 and review the impact of the ₹25,000 limit on their relevant employee population.
The revision should not be implemented as a blanket instruction to calculate every social security contribution on ₹25,000.
2. Keep the PF and EPS provisions distinct
Payroll teams should distinguish between the wage ceiling applicable under Chapter III and the wage limit specified for the relevant Central Government EPS contribution.
The two provisions must be mapped separately in payroll rules, contribution calculations and compliance documentation.
3. Review payroll configuration and contribution logic
Organisations using automated payroll systems should verify that the relevant wage limits are correctly configured for their intended statutory purposes.
The revision of the Chapter III wage ceiling should not inadvertently change the wage base for the Central Government EPS contribution contrary to G.S.R. 890(E). However Central Government Contribution paid by Govt. only.
4. Review employee categories and eligibility
A wage limit does not, by itself, resolve every question of statutory coverage or eligibility.
Employers should assess the applicable scheme provisions and employee-specific circumstances before determining contribution obligations, especially for employees whose wages are above ₹15,000 per month.
5. Maintain an audit trail
Employers should retain the relevant Gazette notifications, documented interpretations, payroll configuration decisions and reconciliation records.
A clear audit trail will help explain why the Chapter III wage ceiling and the EPS contribution wage limit have been applied differently.
7. Does the EPS Amendment Change the Entire Pension Scheme?
No. G.S.R. 890(E) amends a specific part of the Employees’ Pension Scheme, 2026—Paragraph 4(2) and the wording of its first proviso.
The notification does not replace the entire scheme. Its impact must be understood in conjunction with the principal scheme and its other applicable provisions.
The Gazette also records that the principal Employees’ Pension Scheme, 2026, was published through G.S.R. 527(E), dated 29 June 2026, and was last amended before this notification through G.S.R. 847(E), dated 25 September 2026.
Accordingly, any comprehensive assessment of pension contribution liability should consider the scheme as a whole rather than relying solely on the amendment.
8. Important Legal and Interpretative Clarification
The notifications establish different limits, but their scope should not be overstated.
S.O. 5109(E) specifies the wage ceiling for the purposes of Chapter III of the Code on Social Security, 2020. G.S.R. 890(E) amends the specific EPS provision concerning the Central Government’s contribution.
Neither notification, standing alone, answers every question concerning employer contributions, employee contributions, pension eligibility, membership, wage definitions or special categories of employees.
In particular, the ₹15,000 figure in G.S.R. 890(E) should not automatically be treated as a universal cap on every component of an employee’s PF or pension calculation. The amendment expressly addresses the relevant Central Government contribution under Paragraph 4(2).
Likewise, the ₹25,000 figure should not be interpreted as a universal wage base for all contributions under the Code.
The complete statutory and scheme framework remains relevant when determining an employer’s actual obligations.
Conclusion: Two Notifications, Two Different Purposes
The September and October 2026 notifications must be read together to avoid a common compliance misunderstanding.
S.O. 5109(E), dated 17 September 2026, notifies ₹25,000 per month as the wage ceiling for the purposes of Chapter III of the Code on Social Security, 2020.
G.S.R. 890(E), dated 15 October 2026, amends Paragraph 4(2) of the Employees’ Pension Scheme, 2026, to limit the relevant Central Government contribution to wages up to ₹15,000 per month, with effect from 17 September 2026.
The practical takeaway for HR and payroll professionals is straightforward:
A higher wage ceiling under the provident fund framework does not automatically translate into a higher wage base for the Central Government’s EPS contribution.
Employers should apply each notification according to its specific statutory purpose, review payroll configuration carefully and avoid treating the two limits as interchangeable.
Source documents: Ministry of Labour and Employment Notification No. S.O. 5109(E), dated 17 September 2026, and Notification No. G.S.R. 890(E), dated 15 October 2026.
Extract of Relevant Notifications
MINISTRY OF LABOUR AND EMPLOYMENT
NOTIFICATION
New Delhi, the 15th October, 2026
G.S.R. 890(E).— In exercise of the powers conferred by clause (b) of sub-section (1) of section 15 of the Code on Social Security, 2020 (36 of 2020), the Central Government hereby makes the following amendments in the Employees’ Pension Scheme, 2026, namely:-
In the said Scheme, in paragraph 4, in sub-paragraph (2),-
(i) for the words “such sum as may be specified by the Central Government”, the words “wages upto rupees fifteen thousand (Rs. 15,000/-) per month” shall be substituted;
(ii) in the first proviso, the words “and the Central Government” shall be omitted.
2. This notification shall come into force on the 17th September, 2026.
[F. No. R-15025/01/2026-SS-II]
TEJASWI S. NAIK, Jt. Secy.
Note: The principal Scheme was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 527(E), dated the 29th June, 2026 and was last amended vide G.S.R. 847(E) dated 25th September, 2026.
MINISTRY OF LABOUR AND EMPLOYMENT
NOTIFICATION
New Delhi, the 17th September, 2026
S.O. 5109(E).— In exercise of the powers conferred by clause (89) of section 2 of the Code on Social Security, 2020 (36 of 2020) and in supersession of the notification of the Government of India in the Ministry of Labour and Employment, number S.O. 2702(E) dated 29th May 2026, except as respects things done or omitted to be done before such supersession, the Central Government hereby notifies rupees twenty-five thousand (₹25,000) per month as the wage ceiling for the purposes of Chapter III of the said Code, with effect from the date of publication of this notification in the Official Gazette.
[F. No. R-12025/01/2026-SS-II]
TEJASWI S. NAIK, Jt. Secy.
MINISTRY OF LABOUR AND EMPLOYMENT
NOTIFICATION
New Delhi, the 17th September, 2026
S.O. 5109(E).— In exercise of the powers conferred by clause (89) of section 2 of the Code on Social Security, 2020 (36 of 2020) and in supersession of the notification of the Government of India in the Ministry of Labour and Employment, number S.O. 2702(E) dated 29th May 2026, except as respects things done or omitted to be done before such supersession, the Central Government hereby notifies rupees twenty-five thousand (₹25,000) per month as the wage ceiling for the purposes of Chapter III of the said Code, with effect from the date of publication of this notification in the Official Gazette.
[F. No. R-12025/01/2026-SS-II]
TEJASWI S. NAIK, Jt. Secy.
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Disclaimer: This article is intended for general information and professional discussion. The application of the notifications to a particular employee or establishment should be determined after reviewing the complete Code on Social Security, 2020, the applicable schemes, and relevant official directions or clarifications.
