EPFO Caps Mandatory PF Deduction At Rs 1,800 A Month; Contributions Above It Now Voluntary

Published 2 July 2026 · india

EPFO Caps Mandatory PF Deduction At Rs 1,800 A Month; Contributions Above It Now Voluntary Published By, Last Updated: July 02, 2026, 11:25 IST EPFO

EPFO Caps Mandatory PF Deduction At Rs 1,800 A Month; Contributions Above It Now Voluntary Published By, Last Updated: July 02, 2026, 11:25 IST EPFO notifies Employees Provident Funds Scheme 2026, capping mandatory employee PF contribution at Rs 1,800 per month on wages up to Rs 15,000, extra contributions now voluntary File photo. The Employees’ Provident Fund Organisation (EPFO) has revamped its provident fund contribution rules, capping the mandatory employee contribution at Rs 1,800 per month while making any additional contribution voluntary. Under the new Employees’ Provident Funds Scheme, 2026, notified on Wednesday, employees will be required to contribute 12 per cent of wages up to the statutory wage ceiling of Rs 15,000 a month.

This translates to a mandatory monthly PF contribution of Rs 1,800, irrespective of how much an employee earns. For instance, even if an employee’s basic salary is Rs 1 lakh per month, the compulsory PF deduction will remain Rs 1,800, with the employer making a matching contribution as mandated under the scheme. Employees who wish to save more for retirement can voluntarily contribute beyond the statutory ceiling. The notification states that an employee may choose to contribute at the statutory rate — or an even higher rate — on wages exceeding the Rs 15,000 ceiling. However, employers are not required to match these additional voluntary contributions.

They may choose to do so at their discretion. The rules also allow both employees and employers to reduce or discontinue such voluntary contributions at any time. The revised framework is expected to affect nearly 8 crore active EPFO subscribers, offering greater flexibility to employees while capping the mandatory provident fund deduction at Rs 1,800 per month. News18 Newsletter Handpicked stories, in your inbox A newsletter with the best of our journalism submit About the Author News Desk The News Desk is a team of passionate editors and writers who break and analyse the most important events unfolding in India and abroad.

From live updates to exclusive reports to in-depth explainers,... Read More First Published: July 02, 2026, 10:54 IST News india EPFO Caps Mandatory PF Deduction At Rs 1,800 A Month; Contributions Above It Now Voluntary Disclaimer: Comments reflect users’ views, not News18’s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy Loading comments...