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If your monthly salary is ₹ 1 lakh or more and PF is deducted every month, then after the implementation of the new EPF Scheme 2026, the most asked question is whether still only ₹ 1,800 mandatory PF will be deducted? The Central Government has implemented the new system, which has replaced the old EPF scheme of 1952. The objective of the new scheme is to make the PF system more simple, digital and transparent. In such a situation, it is important for the employees to understand how PF will be deducted from their salary.

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How much PF will be deducted on a salary of ₹ 1 lakh?

As per the new EPF Scheme 2026, the mandatory employee contribution will be applicable only up to the prescribed salary limit of ₹15,000. This simply means that the mandatory PF contribution will be 12% of Rs 15,000 i.e. ₹1,800 per month. If your basic salary is ₹1 lakh and your company was deducting PF on the entire basic salary till now, then under the new system, contribution of more than ₹1,800 will be considered voluntary. That is, if the employees wish, they can deposit more amount in PF, but for this their consent will be necessary.

Will the company also deposit more PF?

If an employee voluntarily wants to deposit more than ₹ 1,800 in PF, it does not mean that the company will also deposit the same additional amount. The company will have to make additional contribution only if its provision for this already exists in its HR policy, appointment letter or employment contract. Otherwise, the company will only make the contributions required under law. That is, the decision to deposit additional PF will depend on the conditions decided between the employee and the employer.

PF rate remains the same, but withdrawal rules become easier

There is no change in the 12% contribution rate of PF in the new EPF scheme 2026. In institutions where 10% PF is already applicable, the old system will continue. However, the government has made the rules for PF withdrawal easier than before. Now, instead of many different provisions, three major categories have been created. Employees will be able to withdraw partial amount of PF under prescribed conditions for needs like serious illness, children's education or marriage, purchase of house, construction or repair. This will make it easier than before to understand the rules and take advantage of them.