New Delhi:- The Ministry of Labour and Employment has made EPF contribution voluntary for those earning more than the monthly salary limit of Rs 15,000 under the new EPF Scheme-2026. According to the new scheme, contribution of more than Rs 1,800, which is 12 percent on a salary of Rs 15,000, will now depend on the mutual consent of the employee and the company owner.
Earlier, after coming under the purview of EPF, the employee and the company owner used to contribute on the basis of the actual salary, even if the salary was more than Rs 15,000. According to the new scheme, the mandatory contribution will be only up to the salary limit fixed by the government. However, if both the parties want, they can continue to contribute to EPF voluntarily even on a salary higher than this.
The most important thing is that 12 percent PF contribution is mandatory only up to the salary limit of Rs 15,000 per month. Contributions beyond this will now be voluntary. This will give employees the freedom to decide how much of their salary they want to deposit in their PF account. According to the new rules, the mandatory limit of Rs 1,800 has been retained in PF contribution.
Under this, even an employee earning Rs 1 lakh per month will have to contribute only Rs 1,800 in PF contribution under EPF. Employees who want to save more at the time of retirement can contribute more than this mandatory amount, but it will be considered voluntary.
Earlier, under the Employees' Provident Funds Scheme 1952, a monthly salary limit of Rs 15,000 was applicable to bring an employee under the ambit of mandatory social security of EPF. For employees whose basic salary was Rs 15,000 or less, the EPF scheme was mandatory, while employees with salaries above this could voluntarily join the social security schemes of EPFO.