The Eastern Voice Correspondent

New Delhi. The Ministry of Labour has introduced the new Employees’ Provident Fund (EPF) Scheme, 2026, replacing the old 1952 rules with a more modern system. One of the biggest changes is that mandatory EPF contributions are now capped at ₹1,800 per month, which is based on 12% of the ₹15,000 salary limit under EPF rules. Employees can still contribute more if they want, but it will now be completely voluntary, and employers are no longer required to match contributions above ₹1,800. This could increase monthly take-home salary for higher earners, but it may also reduce long-term retirement savings if employees do not voluntarily save extra money.

The new scheme also simplifies PF withdrawals by reducing 13 different advance withdrawal categories to just three — Essential Needs, Housing, and Special Needs. Members can now withdraw up to 100% of their eligible PF balance, although at least 25% of the amount must remain in the account. Along with these changes, compliance rules for companies have become stricter. Employers will now be fully responsible for PF contributions of contract workers, and companies must submit detailed digital Form V reports within 15 days.