Introduction

The Employees’ Provident Fund Organisation (EPFO) has revised the wage ceiling used for mandatory EPF coverage from ₹15,000 to ₹25,000 per month, effective 17 September 2026. The change brings employees earning between ₹15,000 and ₹25,000 within the mandaty EPFO coverage framework, subject to the applicable statutory provisions. The revised ceiling also requires organisations to review their payroll configuration so that PF calculations are based on the updated wage limit.

In uKnowva HRMS, organisations that have configured PF calculations using the earlier ₹15,000 ceiling need to update the relevant PF settings and salary structure formulas. This ensures that the PF calculation uses the revised ₹25,000 basic salary ceiling where applicable.

This article explains the complete configuration process in two parts. The first part covers updating the PF calculation settings at the plugin level. The second part explains how to update existing salary structure formulas where the earlier ₹15,000 PF cap has been configured.

Note: The PF contribution percentage and corresponding threshold values can vary based on the organisation's internal PF policy. The values mentioned in this article, including ₹72,000 and ₹75,000, should be configured according to the applicable policy for the uKnowva HRMS instance.

Note on Applying the Revised PF Rules

uKnowva HRMS supports the updated PF wage configuration, and these changes can be applied based on the organisation’s payroll cycle. The updated configuration can be made effective from the first date of the payroll cycle.

For example, if your payroll cycle runs from the 1st to the last day of the month and you want to apply the revised PF rules from 17 September, the Government has not yet clearly confirmed whether the revised PF rules should be applied from 17 September for payroll calculation purposes. In such a case, you can first generate the salary using the existing PF configuration and export the salary data. Once the applicable effective date is clarified, you can update the salary records using the Update/Import Past Salary process.

uKnowva HRMS does not support applying these PF changes with a mid-month effective date.

Part 1: Update the PF Cap at the Plugin Level

Step 1: Open the PF Calculator Plugin

Click your profile photo in the top-right corner of the screen. From the list of options that appears, select uKnowva Configuration.

The system will open the uKnowva Configuration page.

From the side menus, select Plugin Manager.

In Plugin Manager, locate the PF Calculator plugin and open its configuration settings.

Step 2: Update the PF Threshold Amount

Within the PF Calculator plugin settings, locate the Please enter the PF threshold amount - max amount to be deducted as PF field. This field may currently contain ₹43,200 or ₹45,000, depending on the PF contribution policy configured for the organisation.

If the existing threshold is ₹43,200, change it to ₹72,000. If the existing threshold is ₹45,000, change it to ₹75,000. Select the value that corresponds to the organisation's existing PF contribution policy.

This update ensures that the PF deduction threshold is aligned with the revised calculation configuration.

Step 3: Update the Maximum Basic Salary for PF Calculation

Next, locate the Enter the Basic salary max amount on which the PF calculation should be based field. If this field is currently set to ₹15,000, update it to ₹25,000.

The earlier value of ₹15,000 represents the previous PF wage ceiling. Updating this value to ₹25,000 aligns the PF calculation configuration with the revised EPFO wage ceiling effective from 17 September 2026.

After updating both values, click Save to save the PF Calculator configuration.

Part 2: Update PF Formulas in Existing Salary Structures

Updating the PF Calculator plugin does not automatically change formulas that have been manually configured within existing salary structures. If your organisation uses salary structures with a PF formula containing 15,000 as the calculation cap, you must update that formula separately.

Step 4: Open Salary Structures

From the side navigation panel, go to HR and select Payroll. From the available Payroll options, select Salary Structures.

The system will open the list of available salary structures. Locate the salary structure that you need to update.

You can use the search bar to find the required structure or locate it manually from the list.

Step 5: Update the PF Formula

Once you locate the required salary structure, click the Edit icon under the Action column. The salary structure will open in edit mode.

Review the PF formula configured in the salary structure. Wherever the formula uses 15,000 as the PF calculation cap, replace it with 25,000 to reflect the revised wage ceiling.

From:

To:

Review the updated formula carefully to ensure that the rest of the calculation remains unchanged. Once you have made the required change, click Save to save the updated salary structure.

Repeat this process for other salary structures that contain the previous ₹15,000 PF cap and need to be updated.

Step 6: Update the Salary Structure for Linked Users

If the salary structure you updated is assigned to employees in uKnowva HRMS, review the salary structures of the linked users as well.

Since their salary calculations are based on the assigned salary structure, you need to update their salary structure or salary details as required to reflect the revised PF calculation.

Make sure the updated salary structure is applied to the relevant users before processing payroll. This ensures that the revised PF calculation is reflected correctly in their salary and payslip.

Conclusion

That’s it!

You’ve now successfully updated the PF calculation settings and salary structure formulas in uKnowva HRMS to align with the revised EPFO wage ceiling of ₹25,000.

By updating the PF Calculator plugin and replacing the earlier ₹15,000 cap in applicable salary structure formulas, you can ensure that PF calculations are configured correctly according to the organisation’s applicable contribution policy.

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