New Delhi: The Union government has clarified that employees are required to contribute only 12% of the statutory wage ceiling to the Employees' Provident Fund (EPF). Regardless of how high the salary is, the mandatory contribution is limited to 12% of the current wage ceiling of ₹15,000, which comes to ₹1,800. Any contribution above this can be made voluntarily.

This clarification has been included in the EPF Scheme, 2026, which came into force on June 29, replacing the EPF Scheme, 1952.

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The previous scheme also stated that contributions above the wage ceiling could be made with permission. For this, the employee and employer had to submit a joint application. However, submitting this form was generally not mandatory.

The new scheme does not mention the submission of a separate form for making higher voluntary contributions. Instead, the amount has to be remitted through the electronic challan system.

Since only the contribution calculated on the statutory wage ceiling is mandatory, many establishments are likely to deduct PF contributions based only on ₹15,000 for employees who become EPF members after June 29 this year, irrespective of their actual salary. Otherwise, employers will also have to make higher matching contributions.

However, this will not affect existing members who have already been making higher voluntary contribution