Is PF Enrollment Mandatory for Employees Above ₹15,000 Basic Salary? EPFO Rules 2026
One of the most debated questions in Indian payroll and HR compliance right now is this — if an employee previously opted out of PF because their basic salary was above ₹15,000, is it now mandatory to enroll them under recent EPFO amendments?
This question has become more urgent because of two major developments in 2025 and 2026 that have created genuine confusion among HR professionals and employers.
Here is the complete and accurate legal position as of August 2026.
The Current Rule — Who Must Be Enrolled in EPF
Under the Employees Provident Funds and Miscellaneous Provisions Act, EPF enrollment is mandatory for all employees whose basic salary plus DA is ₹15,000 or below per month at the time of joining.
For employees whose basic salary plus DA exceeds ₹15,000 at the time of joining and who have never been EPF members previously — PF enrollment is not compulsory. These employees are classified as excluded employees and can legally opt out by submitting Form 11 at the time of joining.
The Critical Exception — Once a Member, Always a Member
If an employee was previously an EPF member at any earlier employer — even years ago — they cannot opt out simply because their current salary exceeds ₹15,000. Once a person becomes an EPF member, their coverage continues regardless of salary level when they change jobs.
Development 1 — Employees Enrolment Scheme 2025 (Window Now Closed)
The Ministry of Labour launched the Employees Enrolment Scheme 2025 which provided a special window from 1st November 2025 to 30th April 2026 for employers to voluntarily enrol eligible employees who were left out from EPF coverage between 1st July 2017 and 31st October 2025.
This was a one-time compliance window — not a permanent mandatory requirement. The window has now closed as of April 2026. Employers who missed this window should consult a PF consultant immediately.
Development 2 — Proposed Wage Ceiling Hike to ₹25,000 (Not Yet Law)
The Finance Ministry has approved a proposal to raise the mandatory EPF wage ceiling from ₹15,000 to ₹25,000 per month. If approved by the Union Cabinet, employees earning basic salary between ₹15,001 and ₹25,000 will have to be mandatorily enrolled in EPF and EPS.
However this proposal has not yet received final Cabinet approval. Even after approval the revised ceiling is expected to take effect from 1st April 2027 — not immediately — to give employers time to adjust payroll systems and compliance processes.
In January 2026 the Supreme Court directed the Central Government and EPFO to decide on revising the wage ceiling within four months after a PIL highlighted that the unchanged limit had excluded a large section of workers from social security.
So What Should Employers Do Right Now?
→ Employees above ₹15,000 basic who were never EPF members and opted out at joining — no mandatory re-enrollment required under current law
→ Employees above ₹15,000 basic who were previously EPF members at any earlier employer — must continue EPF coverage, no opt-out permitted
→ Employees between ₹15,001 and ₹25,000 basic — watch for Cabinet notification on wage ceiling hike, likely effective April 2027
→ Voluntary enrollment above ₹15,000 is possible under Para 26(6) of the EPF Scheme with mutual consent of employer and employee — but must be applied within 6 months of joining
→ Employers who missed the Employees Enrolment Scheme 2025 window should consult a PF consultant for regularisation options
EPF Interest Rate 2025-26
The current EPF interest rate is 8.25% per annum for FY 2025-26 — the third consecutive year at this level, recommended by the Central Board of Trustees in March 2026.
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Find verified PF Consultants and HR Compliance Experts on BusinessBazar —
businessbazar.in/services/hr-consultant/ahmedabad
This question has become more urgent because of two major developments in 2025 and 2026 that have created genuine confusion among HR professionals and employers.
Here is the complete and accurate legal position as of August 2026.
The Current Rule — Who Must Be Enrolled in EPF
Under the Employees Provident Funds and Miscellaneous Provisions Act, EPF enrollment is mandatory for all employees whose basic salary plus DA is ₹15,000 or below per month at the time of joining.
For employees whose basic salary plus DA exceeds ₹15,000 at the time of joining and who have never been EPF members previously — PF enrollment is not compulsory. These employees are classified as excluded employees and can legally opt out by submitting Form 11 at the time of joining.
The Critical Exception — Once a Member, Always a Member
If an employee was previously an EPF member at any earlier employer — even years ago — they cannot opt out simply because their current salary exceeds ₹15,000. Once a person becomes an EPF member, their coverage continues regardless of salary level when they change jobs.
Development 1 — Employees Enrolment Scheme 2025 (Window Now Closed)
The Ministry of Labour launched the Employees Enrolment Scheme 2025 which provided a special window from 1st November 2025 to 30th April 2026 for employers to voluntarily enrol eligible employees who were left out from EPF coverage between 1st July 2017 and 31st October 2025.
This was a one-time compliance window — not a permanent mandatory requirement. The window has now closed as of April 2026. Employers who missed this window should consult a PF consultant immediately.
Development 2 — Proposed Wage Ceiling Hike to ₹25,000 (Not Yet Law)
The Finance Ministry has approved a proposal to raise the mandatory EPF wage ceiling from ₹15,000 to ₹25,000 per month. If approved by the Union Cabinet, employees earning basic salary between ₹15,001 and ₹25,000 will have to be mandatorily enrolled in EPF and EPS.
However this proposal has not yet received final Cabinet approval. Even after approval the revised ceiling is expected to take effect from 1st April 2027 — not immediately — to give employers time to adjust payroll systems and compliance processes.
In January 2026 the Supreme Court directed the Central Government and EPFO to decide on revising the wage ceiling within four months after a PIL highlighted that the unchanged limit had excluded a large section of workers from social security.
So What Should Employers Do Right Now?
→ Employees above ₹15,000 basic who were never EPF members and opted out at joining — no mandatory re-enrollment required under current law
→ Employees above ₹15,000 basic who were previously EPF members at any earlier employer — must continue EPF coverage, no opt-out permitted
→ Employees between ₹15,001 and ₹25,000 basic — watch for Cabinet notification on wage ceiling hike, likely effective April 2027
→ Voluntary enrollment above ₹15,000 is possible under Para 26(6) of the EPF Scheme with mutual consent of employer and employee — but must be applied within 6 months of joining
→ Employers who missed the Employees Enrolment Scheme 2025 window should consult a PF consultant for regularisation options
EPF Interest Rate 2025-26
The current EPF interest rate is 8.25% per annum for FY 2025-26 — the third consecutive year at this level, recommended by the Central Board of Trustees in March 2026.
Need Expert Guidance on PF Compliance?
Find verified PF Consultants and HR Compliance Experts on BusinessBazar —
businessbazar.in/services/hr-consultant/ahmedabad
Need Help with PF Enrollment and Compliance?
This article is for general informational and educational purposes only. It does not constitute legal or professional advice. EPF rules, EPFO notifications, and statutory requirements are subject to change. The proposed wage ceiling hike to ₹25,000 has not yet received final Cabinet approval as of August 2026 and timelines may change. Always consult a qualified PF consultant or labour law expert before making enrollment decisions for your organization. BusinessBazar accepts no liability for any errors, omissions, or outcomes arising from the use of this information.