Big Employees' Provident Fund change: Mandatory PF contributions capped at Rs.15,000 wage ceiling
India, July 2 -- In a significant overhaul of India's social security framework for formal sector workers, the Centre has made Employees' Provident Fund (EPF) contributions above the statutory wage ceiling voluntary under the newly notified Employees' Provident Funds Scheme, 2026.
The Labour and Employment Ministry notified the new rules on Monday, under which both employee and employer contributions will be capped at the existing wage ceiling of Rs.15,000 per month for mandatory EPF contributions.
Any contribution on basic wages exceeding that threshold will be optional for both parties.
What changes under the new rules?
Under the new scheme, mandatory EPF contributions will be restricted to the statutory wage ceiling, ending the ear...
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