The Employees’ Provident Fund Organisation (EPFO) has introduced changes to provident fund contribution rules under the new Employees’ Provident Funds Scheme, 2026. The revised framework caps the mandatory employee contribution at Rs 1,800 per month, while allowing workers to contribute more voluntarily if they choose.

The new rules were notified on Wednesday and will apply to EPFO subscribers covered under the scheme.

Mandatory contribution linked to wage ceiling

Under the revised rules, employees will continue to contribute 12 per cent of wages up to the statutory wage ceiling of Rs 15,000 per month. As a result, the compulsory provident fund contribution will be limited to Rs 1,800 every month.

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The cap will apply irrespective of an employee’s salary. For example, an employee earning a basic salary of Rs 1 lakh a month will still be required to contribute only Rs 1,800 towards the provident fund.

Employers will continue to make a matching contribution as required under the scheme.

New EPFO Schemes Notified

Employees’ Provident Fund Scheme, 2026
Employees’ Pension Scheme, 2026
Employees’ Deposit Linked Insurance Scheme, 2026

Ensuring Social Security for All#EPFO #EPFOWithYou #HumHainNa pic.twitter.com/NRo7mv5Xms— EPFO (@officialepfo) July 1, 2026

Higher contributions become voluntary

The new framework allows employees to contribute beyond the statutory wage ceiling if they wish to increase their retirement savings.

According to the notification cited by News18, employees may contribute at the prescribed rate, or even at a higher rate, on wages above the Rs 15,000 limit. However, employers are not obligated to match these additional contributions.

Companies may choose to contribute beyond the mandatory amount, but the decision will remain voluntary.

The rules also provide flexibility to both employees and employers, allowing them to reduce or discontinue these voluntary contributions whenever required.

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Impact on EPFO subscribers

The revised scheme is expected to affect nearly 8 crore active EPFO subscribers across the country.

The changes are aimed at giving employees greater flexibility in managing their retirement savings while keeping the mandatory provident fund deduction fixed at Rs 1,800 per month, regardless of income levels.

FAQs:

What is the new mandatory PF contribution limit?

The mandatory employee PF contribution has been capped at Rs 1,800 per month.

Can employees contribute more than Rs 1,800 to PF?

Yes, employees can voluntarily contribute more, but employers are not required to match it.