EPS 2026 enrolment rule changes will automatically bring certain existing EPF members into the Employees’ Pension Scheme if their wages are within the newly revised ₹25,000 monthly ceiling.
The government has amended the pension scheme with retrospective effect from September 17, 2026.
The change follows the increase in the mandatory EPFO wage ceiling from ₹15,000 to ₹25,000 a month.
It addresses a gap under which some employees were members of EPF but remained outside EPS.
EPS 2026 Enrolment Rule Changes After Wage Ceiling Hike
Under the amended rules, an employee who is already a member of the Employees’ Provident Funds Scheme but is not an EPS member can be brought into EPS if their wages on the date of the revised wage-ceiling notification are ₹25,000 or less.
The amendment was notified by the Ministry of Labour and Employment on September 25, 2026.
The notification inserted a new clause into Paragraph 7 of the Employees’ Pension Scheme, 2026 and made it effective from September 17.
This means eligible existing EPF members earning between ₹15,000 and ₹25,000 who were previously excluded from EPS can now come under pension coverage from September 17, subject to the applicable conditions.
Who Will Be Automatically Enrolled in EPS?
The rule mainly affects existing EPF members who were not part of EPS because their wages were above the earlier ₹15,000 ceiling.
With the ceiling now raised to ₹25,000, eligible employees in this wage range are covered by the amended provision.
According to the EPFO clarification cited in the notification-related guidance, the employer is responsible for enrolling eligible members and starting the required compliance.
Employees do not need to submit a separate application for this automatic enrolment.
Employees whose wages exceed ₹25,000 on the date of the new wage-ceiling notification are outside this automatic enrolment provision.
They may, however, have the option to enrol through their employer where the applicable rules permit it.
What Happens to the Pension Contribution?
For employees covered by the change, the employer’s contribution towards EPS will be calculated at 8.33% of wages, subject to the revised ₹25,000 ceiling and applicable rules.
For example, on wages of ₹20,000, the employer’s share allocated to EPS would be ₹1,666 a month.
The remaining portion of the employer’s contribution goes towards EPF, while the employee’s own 12% contribution continues to go to the provident fund.
The change therefore affects how the employer’s contribution is divided between EPF and EPS for newly covered employees.
It does not mean that an employee’s entire 12% contribution is transferred to the pension scheme.
Why the EPS 2026 Change Matters
The revised rule expands pension coverage for employees who were already participating in EPF but had previously remained outside EPS because of the old wage ceiling.
The government had raised the mandatory EPFO wage ceiling from ₹15,000 to ₹25,000 with effect from September 17, 2026.
The subsequent EPS amendment ensures that eligible existing EPF members within the revised ceiling are not left outside pension coverage simply because they were previously excluded.
For affected employees, the key point is that the enrolment is intended to be handled by the employer under the revised rules, rather than requiring each eligible employee to submit a fresh application.
