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Key Takeaways
According to the EPF Scheme, 1952, it will expire in its 74th year on 29 June 2026. EPF Rate of PF has not increased because contributions to PF will continue at 12% of 15,000, i.e. 1,800 per month.
If an individual pays more than ₹1,800, then it would be termed as a voluntary contribution under the law. Most organisations deduct PF beyond ₹15,000 through their own agreement.
The Central Government of India launched the EPF Scheme 2026 on 29 June 2026. The new rules are much easier than the existing EPF Scheme 1952, and it impacts about 8 crore subscribers to the EPFO. The scheme clearly notes that the compulsory deduction towards PF would be only up to the statutory wage limit of ₹15,000 per month. Therefore, the mandatory deduction for each month in EPF would be ₹1,800, or 12% of ₹15,000.
Even if an individual gets ₹1 lakh as a basic salary, his/her mandatory deduction in EPF remains at ₹1,800 per month under the new scheme. The matching of voluntary contributions by employers is not obligatory in the absence of any provision regarding the same in the agreement or the policies of the organisation. Employees and organisations can withdraw from voluntary contributions as per the new scheme at any time.
Before June 29, 2026, contributions above ₹15,000 were often governed by informal company policies with no formal legal framework. The EPF Scheme 2026 formally ends that ambiguityfor all 8 crore members. According to LoansJagat's PF balance guide, an employee making the mandatory ₹1,800 monthly contribution accumulates a total annual PF deposit of ₹43,200 when the employer's matching ₹1,800 is included. Voluntary contributions above this will earn the same 8.25% annual interest rate for FY 2025-26, but without guaranteed employer matching.
On the positive side, withdrawal categories have been reduced from 13 to 3: Essential Needs, Housing Needs, and Special Circumstances. The Central Board of Trustees approved these withdrawal changes on October 13, 2025. Members can now withdraw up to 100% of their eligible PF balance but must retain at least 25% of total contributions in their accounts at all times.
Puneet Gupta, Partner, People Advisory Services at EY, told Business Standard on July 1, 2026: “The new EPF Scheme, 2026, represents a major milestone in the next phase of implementation of the labour codes. It modernises the PF framework through greater digitalisation, simplified processes, and enhanced compliance requirements.” He added that some schemes, such as EEC 2026, Vishwas 2026, and Amnesty 2026, provide a 6-month window to fill the historical gap.
The practical step is to check their employment contract before July 2026 for employees. Voluntary PF contributions above ₹1,800 must now be separately agreed upon in writing with the employer, and employers are not legally bound to match them. Employees must also submit a consolidated return in Form V within 15 days of the scheme becoming applicable, as per new employer compliance requirements.
Conclusion
The New EPF Scheme 2026 is not just provide you with guidance on the country’s PF system, which has not had any such thing since the 1950s, but it will also put an end to the confusion regarding the voluntary contributions and make sure that the maximum compulsory PF of the employees remains at Rs 1,800 per month.
FAQs
How do the new EPF Scheme 2026 gazette notifications, dated June 29, 2026, change and does it impact my EPF withdrawals?
The EPF Scheme 2026, effective June 29, 2026, replaces the 74 years old EPF Scheme, 1952. The 12% contribution ratio, your withdrawal process, interest rates, and taxability are still same. The amendment just revises the administration and governance structure of the Scheme, especially for the exempted establishments running their PF trust.
Is there any temporary relaxation in PF contribution under EPF Scheme 2026?
Yes. Section 2(2A) in the newly introduced EPF Scheme 2026 gives the Central Government discretion to reduce or suspend the PF contribution in exceptional cases such as pandemic, epidemic, or natural disasters. It is a purely temporary arrangement and doesn’t make any permanent changes in the regular 12% contribution system.
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