The new EPF scheme structures monthly contributions up to ₹2,350 while allowing employees to withdraw up to 75% of their funds for essential needs.
New Delhi: With the implementation of the new EPF scheme, 12% of the statutory wage limit will go into the PF, while 8.33% from the employer's contribution will be directed to the Pension Fund.
A worker’s contribution of 12% on ₹15,000, which amounts to ₹1,800, will reach the PF account. From the ₹1,800 that the employer is required to pay, if ₹1,250 goes into the Pension Fund, the remaining ₹550 will be credited to the PF.
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This means a total of ₹2,350 will reach the PF account. The new scheme clarifies that any contribution exceeding this amount will be voluntary.
Up to 75% of amount can be withdrawn
The new scheme provides an opportunity to withdraw the entire remaining amount from the PF except for 25%. Previously, only a limited amount could be withdrawn.
Funds can be withdrawn for three categories of needs: emergency purposes (illness, education, marriage), house construction, purchase and renovation and special circumstances.
It was previously announced that the PF would be linked to bank accounts. Experts point out that since transactions can consequently be made via UPI and ATMs, the tendency to withdraw money may increase, potentially reducing the savings available at the time of retirement.
Published: 03 Jul 2026, 01:34 pm IST
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