No additional EPS contribution by government on higher wage ceiling of Rs 25,000; know what it means for your pension
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The central government confirmed that the Employees' Pension Scheme contribution will stay at the Rs 15,000 cap, despite the new Rs 25,000 wage ceiling.
- ✓In a notification dated October 15, 2026, the Ministry of Labour and Employment said this change started from September 17, 2025, to avoid a funding shortfall.
Story at a Glance
- Category
- BUSINESS
- Reported By
- The Economic Times
- Reading Speed
- 5 Minute(s)
- Market Focus
- India Economy
Synopsis
EPS pension: In a recent notification, the central government confirmed that the Employees' Pension Scheme contribution will remain at the current cap of Rs 15,000, despite announcing a new wage ceiling of Rs 25,000. This choice reflects findings from earlier actuarial evaluations pointing to a potential funding shortfall. Additionally, the government has promised supplementary budgetary support to ensure current pension payouts, although sustainability concerns have been voiced in Parliament.
Listen to this article in summarized format
The central government has notified that it would continue contributing to Employees’ Pension Scheme (EPS) members’ EPS fund at the earlier wage ceiling of Rs 15,000, despite the new wage ceiling of Rs 25,000 coming into effect from September 17, 2025.
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The Economic Times
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