PF Contribution for September 2026: Calculation for an Employee Earning ₹20,000 per Month

PF Contribution for September 2026: Calculation for an Employee Earning ₹20,000 per Month

September 2026 requires a split-period PF calculation because the statutory wage ceiling increased from ₹15,000 to ₹25,000 with effect from 17 September 2026. For an employee earning ₹20,000 in monthly PF wages, the second period’s calculation uses their actual wages of ₹20,000. Source: Government announcement

₹20,000 is therefore the employee’s applicable monthly wage base in this example—not the revised statutory ceiling.

This illustration assumes the employee was already a PF member, has 30 contributory days in September, and contributions were previously restricted to the statutory ceiling. It uses the standard 12% contribution rate for both employee and employer. Source: EPFO contribution rates

How the September contribution is calculated

Particulars	1–16 September	17–30 September
Number of days	16	14
Applicable monthly PF wage base	₹15,000	₹20,000
Prorated PF wages	₹15,000 × 16 ÷ 30 = ₹8,000	₹20,000 × 14 ÷ 30 = ₹9,333.33
Employee contribution at 12%	₹960	₹1,120
Employer contribution at 12%	₹960	₹1,120

The combined contribution wage base is:

₹8,000 + ₹9,333.33 = ₹17,333.33

Accordingly, the contributions for September 2026 are:

Contribution	Amount
Employee PF deduction	₹2,080
Employer contribution towards EPF/EPS	₹2,080
Combined employee and employer contributions	₹4,160

The employer’s ₹2,080 includes any applicable EPS allocation; pension contribution is taken from the employer’s share. EDLI and administrative charges are additional and are excluded from the figures above. Source: EPFO contribution structure

Single ECR for September 2026

Following the FAQ excerpt supplied, one Electronic Challan-cum-Return (ECR) should be filed for September, incorporating the combined contributions calculated for both periods. The two calculations form part of the same monthly return.

Payroll teams should retain the period-wise calculation and check membership status, contributory days and applicable rounding before filing. Employees newly covered from 17 September, or those already contributing on higher wages, require a calculation reflecting their circumstances.

Reference: EPFO Wage Ceiling FAQs supplied with the request. The PDF could not be retrieved; the single-ECR explanation above relies on the excerpt provided.

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