EPFO’s Big Wage-Band Reset

Twelve years is a long time for a wage ceiling to remain unchanged. The last revision came in September 2014, when the limit was raised from Rs.6,500 to Rs.15,000. Last week, the Union Cabinet approved another increase, taking the ceiling to Rs.25,000 a month with effect from 17 September 2026. The government’s estimate is that more than 51 lakh additional employees will come within mandatory EPFO coverage as a result of the change. For employers and payroll professionals, however, the...

min read

Twelve years is a long time for a wage ceiling to remain unchanged. The last revision came in September 2014, when the limit was raised from Rs.6,500 to Rs.15,000. Last week, the Union Cabinet approved another increase, taking the ceiling to Rs.25,000 a month with effect from 17 September 2026. The government’s estimate is that more than 51 lakh additional employees will come within mandatory EPFO coverage as a result of the change. For employers and payroll professionals, however, the headline number is only the starting point. The more important questions are who will be covered, which wages will be taken into account and how the revised provisions will be implemented. Wage Ceiling The existing wage ceiling of Rs.15,000 a month is being raised by Rs.10,000, or 66.7 percent, to Rs.25,000. The change takes effect from 17 September 2026 and marks the first revision since September 2014. The government expects more than 51 lakh additional employees to be covered. Estimated expenditure is about Rs.56,696 crore over five years, while annual government outgo is expected to rise to approximately Rs.11,339 crore. The standard contribution remains 12 percent each from the employee and employer, subject to applicable provisions. The Cabinet said the decision will expand access to provident-fund savings, pension protection under the Employees’ Pension Scheme (EPS) and insurance protection under the Employees’ Deposit Linked Insurance Scheme (EDLI), in accordance with the applicable scheme provisions. The wage ceiling is not merely an administrative threshold. It determines the point at which mandatory EPF coverage applies under the existing framework. At present, a fresh employee joining employment at wages above Rs.15,000 a month is not automatically brought within mandatory EPF coverage and may remain outside mandatory provident-fund, pension and associated insurance protection, subject to applicable statutory provisions. The revised ceiling will bring a substantial section of employees earning between Rs.15,000 and Rs.25,000 within the mandatory coverage framework. The government has also quantified the fiscal impact. The estimated expenditure is about Rs.56,696 crore over five years, while annual government outgo is expected to rise to approximately Rs.11,339 crore, compared with existing annual budgetary support of about Rs.10,250 crore. The Labour Ministry has linked the revision to sustained wage growth, rising incomes and the continued expansion of formal employment since the previous revision in 2014. Payroll Illustration Consider an employee earning Rs.22,000 a month who becomes subject to mandatory coverage under the revised ceiling. At the standard 12 percent contribution rate, if the full eligible wage is used as the contribution base, the employee’s contribution would rise from Rs.1,800 to Rs.2,640 a month, while the employer’s contribution would similarly rise from Rs.1,800 to Rs.2,640. Total monthly contributions would therefore increase from Rs.3,600 to Rs.5,280 — a combined increase of Rs.1,680. However, this should not be treated simply as Rs.1,680 of additional employee savings. Contributions are allocated between EPF and EPS components as prescribed, with the EPF component accumulating in the employee’s account and the EPS component providing pension benefits subject to scheme conditions. The Rs.22,000 example is illustrative, not a universal payroll formula. The final treatment of wage components, existing employees in this band, EPS allocation and transitional matters will depend on the statutory notification and EPFO implementation instructions. For payroll professionals, the immediate task is to assess the operational impact. Key questions include the effective date for existing employees and new joiners, which wage components will count towards PF, whether the 10 percent concessional rate for notified establishments will continue, how the revised ceiling will interact with EPS pensionable wages, and what changes will be required in payroll systems. The Cabinet approval establishes the policy decision; the formal Gazette notification and EPFO instructions will determine how it is translated into payroll processes. The revised ceiling is the first increase since September 2014 and is expected to bring more than 51 lakh additional employees, particularly those in the Rs.15,000-Rs.25,000 wage band, under mandatory EPFO coverage. For them, the change can expand access to provident-fund savings, EPS pension and EDLI insurance, subject to scheme provisions. For employers, it means reviewing payroll costs, employee data, eligible wage components, contribution calculations and compliance systems. The government has described the move as part of efforts to extend statutory social security and strengthen formal employment. The policy has been announced. For payroll professionals, the next chapter is implementation. (The writer is a Cost and Management Accountant and founder of TaxoDas. Views personal

Squash gains momentum as global spotlight

Bhalchandra Chorghade

Mar 30

3 min read

Mumbai: As squash prepares to make its long-awaited debut at the Los Angeles 2028 Olympic Games, India’s position on the global map of the sport received a significant boost with the successful staging of the JSW Indian Open 2026 in Mumbai. The tournament, held on the Professional Squash Association World Tour circuit, not only showcased elite talent but also underlined the growing importance of corporate partnerships in nurturing emerging sports.

Adding to the event’s stature, K Raheja Corp Homes joined as the Official Partner, marking its first foray into sports sponsorship. The association reflects a broader trend of non-endemic brands recognising the potential of niche yet globally governed sports like squash, especially at a time when Olympic inclusion has dramatically elevated its profile.

The JSW Indian Open, classified as a PSA Copper-level event, holds substantial competitive significance. It offers crucial ranking points that directly influence global standings, seeding positions and qualification pathways for marquee events, including the 2028 Olympics. For Indian players, such tournaments provide rare home-ground exposure against international competitors, bridging a critical gap in high-performance experience.

Speaking on the association, a spokesperson for K Raheja Corp Homes said, “The JSW Indian Open is a high-calibre platform that reflects the kind of performance, discipline and global competitiveness we strongly identify with. Our association is a natural extension of our commitment to aligning with credible, international-standard ecosystems that are shaping India’s presence on the global stage.”

Echoing the importance of corporate backing, Karan Yadav, Chief Commercial Officer at JSW Sports, emphasised the role of partnerships in scaling such events. “Partnerships play a crucial role in shaping events like the JSW Indian Open and we are pleased to have K Raheja Corp Homes come on board this year. As their first association with sport, it reflects a considered and forward-looking approach towards supporting emerging platforms like squash. Their partnership has helped us further strengthen the overall tournament experience for both Indian and international players,” he said.

On the court, the tournament delivered high-intensity action, with Abhay Singh and Anahat Singh clinching the men’s and women’s titles respectively. Their victories underline the steady rise of Indian squash talent, which has been gaining traction on the global stage but still requires consistent exposure to top-tier competition.

Beyond the winners, the tournament served as a vital competitive platform for players to accumulate ranking points and enhance their global standings. With squash now firmly on the Olympic roadmap, such events are no longer peripheral, they are central to an athlete’s progression and international relevance.

The significance of the JSW Indian Open also lies in its role as a catalyst for ecosystem development. India, traditionally overshadowed by squash strongholds like Egypt and England, is increasingly emerging as a viable host for global events. This shift is being driven by improved infrastructure, professional tournament management and rising audience engagement.

Corporate participation, as demonstrated by K Raheja Corp Homes, is a critical piece of this puzzle. The partnership signals a strategic pivot in brand engagement—from conventional advertising to purpose-led platforms that intersect sport, lifestyle and aspiration. By aligning with a globally recognised sporting event, the company extends its brand narrative into a domain defined by excellence and international competitiveness.

As India deepens its integration with global sporting circuits, platforms like the JSW Indian Open are becoming indispensable. They not only provide athletes with the competitive exposure required at the highest level but also help build a sustainable sporting culture backed by institutional and corporate support.

With squash set to enter the Olympic arena, the need for such high-quality tournaments in India has never been greater. The success of the JSW Indian Open 2026 demonstrates that the country is not just participating in the global squash movement—but is poised to play a defining role in its future trajectory.

EPFO’s Big Wage-Band Reset

Squash gains momentum as global spotlight

Recent Posts

Comments