Employees who are already members of the Employees’ Provident Fund but were earlier kept out of the pension scheme may now get automatic coverage under the Employees’ Pension Scheme.
The Labour Ministry has amended the Employees’ Pension Scheme, 2026 to bring such EPF members into the pension scheme if their wages fall within the new wage ceiling notified by the government.
The notification was issued on September 25, 2026. However, it says the change will be effective retrospectively from September 17, 2026.
The change is important for employees who are part of EPF but are currently not members of EPS.
What has changed?
The government has added a new category of employees who can become members of EPS.
The notification says an employee will be covered if he or she “has been a member of the Employees’ Provident Funds Scheme, 2026, but not the member of this Scheme” and whose wages on the date of notification of the new wage ceiling are “less than or equal to wage ceiling notified by the Central Government.”
In simple terms, an employee who was earlier covered by EPF but not EPS can now be brought under EPS if their wages are within the revised ceiling.
This is an important change because such employees may have remained outside the pension scheme earlier due to their wage level at the time of joining EPF.
The notification does not ask such employees to go through a separate application process. The amendment itself creates the eligibility category under EPS.
Why is this important?
EPF provides a retirement savings corpus, while EPS provides a monthly pension subject to the applicable rules and conditions.
The government has recently raised the EPF wage ceiling to Rs 25,000 from Rs 15,000, expanding mandatory EPF coverage to more workers. The latest EPS notification comes against this broader expansion of social security coverage.
EPFO has also been working on simplifying services and making pension and PF processes more digital. Its Centralised Pension Payments System allows pensioners to receive pension through any bank or branch across the country. EPFO has also been upgrading its systems under its digital transformation programme.
The latest notification fits into this wider effort to bring more workers under formal social security while reducing the need for separate administrative processes.
For employees, the key point is that being an EPF member will not necessarily mean staying outside EPS simply because they were earlier not covered. If their wages meet the newly notified ceiling, the amended rules provide for their inclusion in the pension scheme.
The notification is effective from September 17, 2026.
Disclaimer: EPS membership and pension benefits are subject to the eligibility conditions and rules notified by the government. Employees should check their EPF and EPS records with EPFO for their individual status.
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