EPFO Update: Under the EPFO's new changes to the provident fund contribution rules, PF deductions above Rs 1,800 will now be made at your discretion. This will impact your take-home salary.

Now PF above Rs 1800 will be deducted as per your wish.

EPFO New Rule: The Employees' Provident Fund Organization (EPFO) has made a major change to the provident fund rules for its 80 million active subscribers, which could impact your take-home salary. Regarding the new rule, the EPFO ​​has stated that from now on, the PF contribution of ₹1,800 per month will be completely voluntary.

The employee will have the option to get more PF deducted.

Under the new rules, a 12% contribution up to the statutory wage limit (currently Rs 15,000 per month) is mandatory. Contributions beyond this limit will be considered voluntary. According to the provisions of the Employees' Provident Funds Scheme, 2026, notified on Wednesday, "An employee may opt to make additional contributions on a voluntary basis at the statutory rate or at any rate above the statutory wage limit for wages exceeding the statutory wage limit."

The new rule is not for everyone.

This means that if your basic salary is ₹15,000 per month or more, then according to government rules, you must contribute 12% of that amount, or ₹1,800 per month, as a PF contribution. This new change in the rules is for those with very high salaries.

For example, if someone's basic salary is ₹50,000, then according to the previous rules, 12% (approximately ₹6,000) of their salary was deducted for PF. Now, under the new rules, even if your basic salary is ₹1 lakh per month, the company will deduct only ₹ 1,800 up to the initial ₹15,000 limit, which is mandatory. The employer will also contribute an equal amount. Whether or not you want more PF deducted from the remaining salary as retirement savings is entirely up to you.

What will you benefit from this?

If you don't have PF deducted from your remaining salary above Rs 15,000, that amount will be added to your take-home pay, resulting in an increase. This will also benefit companies, as they are not legally required to make a higher contribution based on an employee's higher salary.