Decoding the October 2026 Amendment to the Employees Pension Scheme Under the Social Security Code

 

Let us look closely at the recent update from the Ministry of Labour and Employment. On October 15, 2026, the government released a gazette notification, GSR 890 E, which amends a specific section of the Employees Pension Scheme 2026. As corporate structures transition into the new Code on Social Security 2020 framework, keeping track of these exact wording changes is what keeps payroll processing and compliance audits running smoothly.

👉 Download the Notification - Amendment to the Employees Pension Scheme Under the Social Security Code: [Click Here to Access the File]

The government exercised its powers under Section 15 subsection 1 clause b of the Social Security Code to amend Paragraph 4, sub-paragraph 2 of the EPS 2026.

First, the amendment replaces the open-ended text regarding sums specified by the Central Government. In its place, the notification inserts a strict limit, stating wages up to rupees fifteen thousand per month.

This demands careful attention from HR heads and legal directors. You might recall that the Union Cabinet previously approved raising the main EPFO statutory wage ceiling to twenty-five thousand rupees per month. However, this specific gazette notification locks the wage base for the Central Government's contribution to the Pension Scheme strictly at fifteen thousand rupees. Importantly, this ₹15,000 limit should not be conflated with the ₹25,000 EPFO statutory wage ceiling, the two apply to different contribution purposes and must be applied separately. Compliance checklists and payroll software need to account for this split ceiling immediately so that EPS contributions are calculated accurately without overstepping the respective statutory caps.

Second, the notification deletes the words "and the Central Government" from the first proviso of that same paragraph. This removes a layer of redundant wording, which is a consistent theme as the government cleans up administrative language across the four new Indian Labour Codes.

Even though the gazette publication occurred on October 15, the government has made this amendment effective retroactively from September 17, 2026. This means any payroll processing or statutory remittances from mid-September onwards must be reconciled with this amendment to prevent any structural audit discrepancies.

Staying ahead of these updates is simply part of the routine for maintaining rigorous corporate statutory compliance. Updating internal guidelines to reflect this exact EPS cap and clearly distinguishing the ₹15,000 government-contribution wage base from the ₹25,000 EPFO ceiling will help businesses avoid unnecessary legal friction.

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