Regular Updates
Latest ESI, PF, payroll and labour law compliance updates from Alok Consultancy Private Limited.
EPF Wage Ceiling Proposed to Increase to ₹25,000
Union Cabinet approves raising the EPF wage ceiling from ₹15,000 to ₹25,000 per month.
On 16 September 2026, the Union Cabinet approved an increase in the EPF wage ceiling from ₹15,000 to ₹25,000 per month. The final notification has not yet been issued by the EPFO Department or Ministry. Alok Consultancy will keep clients informed as soon as the official notification is released, and will guide affected businesses on the compliance changes required once it takes effect.
ESI – New Wage Definition
Under the Code on Social Security, 2020, ESI applicability can no longer be based only on Basic Salary — the 50% wage rule now applies.
Under the Code on Social Security, 2020, "Wages" primarily include Basic Pay, Dearness Allowance (DA) and Retaining Allowance. Certain allowances and benefits are excluded from wages; however, if the total amount of excluded components exceeds 50% of the total remuneration, the excess amount is added back to wages. The ESI wage ceiling remains ₹21,000 per month. Therefore, under the new wage definition, ESI applicability should not be determined only on the basis of Basic Salary — the 50% wage rule and applicable components of total remuneration must also be considered, w.e.f. 21-Nov-2025.