New EPF Scheme 2026 Introduced by Government for Employees
The central government has unveiled the 'Employees Provident Fund (EPF) Scheme, 2026', which replaces the previous scheme from 1952. This new initiative mandates a 12% contribution from employees on salaries up to ₹15,000, ensuring a minimum monthly contribution of ₹1,800. While employers are not obligated to match voluntary contributions, the updated framework aims to enhance flexibility for around 80 million EPFO subscribers. Read on to learn more about the implications of this new scheme.
Jul 3, 2026, 14:00 IST
Overview of the New EPF Scheme
If you are a salaried employee, there is important news for you. The central government has officially announced the new 'Employees Provident Fund (EPF) Scheme, 2026', which will replace the older 'EPF Scheme, 1952'. While the contribution rate for your PF remains unchanged, the new scheme clearly outlines the mandatory contribution amount and the options available for those wishing to contribute more.
Impact on Subscribers
It is anticipated that these new regulations will simplify the EPF system for approximately 80 million active EPFO subscribers, making it more digital and user-friendly. This new scheme came into effect after being published in the gazette on June 29, replacing the long-standing 'EPF Scheme, 1952'. Under the newly notified 'Employees Provident Fund Scheme, 2026', employees are required to contribute 12 percent of their salary up to a legal wage limit of ₹15,000 per month. This means that regardless of how much an employee earns, they must contribute ₹1,800 to their PF each month.
Contribution Details
For instance, if an employee's basic salary is ₹1 lakh per month, the mandatory PF deduction will still be ₹1,800, and the employer will contribute the same amount according to the scheme's rules. Employees who wish to save more for retirement can voluntarily contribute beyond the stipulated limit. According to the notification, employees can opt to contribute at the prescribed rate or even higher on salaries exceeding ₹15,000.
Employer Contributions
However, employers are not required to match these additional voluntary contributions; they can choose to do so at their discretion. The regulations allow both employees and employers to reduce or cease voluntary contributions at any time. The revised framework is expected to affect around 80 million active EPFO subscribers, providing employees with greater flexibility while maintaining the mandatory provident fund deduction at ₹1,800 per month.
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