BCCI’s Salary Cap Rule for IPL 2026 Auction: Why Overseas Players Can’t Earn Above ₹18 Crore

The IPL 2026 mini-auction is accompanied by a regulation that plays a critical role in the scenario of overseas players. Although foreign players can initiate fierce bidding wars that go beyond ₹18 crores, the actual amount of their salary will still remain within this limit.

At the heart of this rule is the BCCI’s “maximum fee” policy, designed to maintain balance in the auction market and prevent inflated contracts during mini-auctions.

How the ₹18 Crore Cap Works

Under IPL regulations, an overseas player’s earnings are capped at the lower of two figures:

The highest retention price in the current cycle (₹18 crore), and

The highest winning bid from the previous mega auction.

For the 2026 cycle, the top retention slab stands at ₹18 crore. Although the last mega auction saw Rishabh Pant command a record ₹27 crore, the lower figure applies—effectively fixing the overseas salary ceiling at ₹18 crore.

Why Bids Can Still Cross ₹18 Crore

What confuses many fans is that bidding itself is not restricted. Franchises may push bids beyond ₹18 crore, but the player’s contract value remains capped. Any amount above ₹18 crore is redirected to the BCCI’s welfare fund.

Importantly, franchises do not get a financial loophole. The team’s purse is deducted by the full winning bid. For example, if a player is bought for ₹20 crore, he receives ₹18 crore, ₹2 crore goes to welfare, and the franchise still loses ₹20 crore from its auction budget.

The Bigger Picture

This rule's purpose is to keep mini-auctions from turning into distorted markets with a few players resulting in very high payments for foreign players. The BCCI's strict imposition of a salary ceiling is aimed at creating financial discipline and equitable rivalry across the various teams.

The IPL 2026 auction will witness this regulation as a major contributor to the strategy of the teams in terms of bidding and planning their rosters.