Amendment to Employees’ Pension Scheme, 2026 revises wage ceiling and expands pension scheme coverage

The Ministry of Labour and Employment has now notified an amendment to the Employees’ Pension Scheme, 2026 (“EPS 2026”), revising the wage ceiling and expanding the membership criteria under the Scheme.

Key Highlights:

1. The wage ceiling applicable for EPS membership has been revised from Rs. 15,000 to Rs. 25,000 per month.
2. Earlier, EPS 2026 covered employees who became members of the Employees’ Provident Funds Scheme, 2026 and whose wages were within the notified wage ceiling, along with certain existing members or eligible members of the erstwhile pension schemes.
3. The Amendment additionally covers employees who were members of the Employees’ Provident Funds Scheme, 2026 but were not members of EPS 2026, provided their wages are less than or equal to the revised wage ceiling of Rs. 25,000.
4. Although the notification was issued subsequently, the Amendment takes effect from 17th September 2026.
5. Accordingly, employees who were earlier outside the scope of EPS due to the applicable wage ceiling may now fall within the pension scheme, subject to fulfilment of the other applicable conditions.