The Employees' Provident Fund Organization (EPFO) has made some major changes for its nearly 80 million members. Under the new rules, the PF contribution limit has been increased from ₹1,500 to ₹1,800. Meanwhile, the process for withdrawing funds from PF has also been simplified. These changes will benefit millions of employees across the country.

According to the new rules, a 12% PF contribution will be required on basic salaries up to ₹15,000. Consequently, the required contribution for both the employee and the employer will be ₹1,800. Employees whose basic salaries exceed ₹15,000 will not be required to make additional PF contributions. However, employees will be able to voluntarily deposit additional amounts into their PF accounts to ensure greater financial security after retirement.

A major change has also been made to the process of withdrawing money from PF. The earlier 13 different categories have been reduced to just three broad categories. These include essential needs, household needs, and special circumstances. Withdrawing PF for purposes like illness, education, marriage, buying or building a house will now be easier. According to the new EPFO ​​rules, employees will be able to withdraw 100 percent of the eligible amount. However, it will be necessary to keep at least 25 percent of the total contribution in the account. The purpose behind this rule is said to be to provide financial security after retirement.

According to the new EPFO ​​rules, employees will be able to withdraw 100% of their eligible amount. However, it will be necessary to keep at least 25% of the total contribution in the account. The purpose behind this rule is said to be to provide financial security after retirement. Meanwhile, new rules have also been implemented for employers. Under the EPFO ​​Scheme 2026, every employer will be required to submit Form V within 15 days. This form requires providing Aadhaar number, PAN number, UAN number, total salary, and EPF details.

PC: India Today