New Delhi, July 3 -- The Centre has clarified that provident fund (PF) contributions above the statutory monthly limit of Rs.1,800 will now be treated as voluntary under the newly notified Employees' Provident Funds (EPF) Scheme, 2026, bringing greater clarity for employers and higher-salaried employees.

The new scheme, notified on June 29, 2026, replaces the Employees' Provident Funds Scheme, 1952 as part of the implementation of the Code on Social Security, 2020. While the notification modernises the legal framework governing EPF, it does not change the contribution rate, wage ceiling or the annual EPF interest rate.

Under the EPF law, both employers and employees contribute 12% of wages towards the provident fund. However, this manda...