If Basic Pay Is 50% Of CTC, Why Is PF Capped At ₹1,800? | EPF Rules Vs New Labour Code Explained
There’s been a lot of confusion recently after the new developments in the labour codes and EPF rules.
Remember, earlier this year the new labour codes led to many employees getting a lower in-hand salary since basic pay had to be at least 50% of your CTC. So instead of paying ₹1,800 per month, which is the mandatory 12% of the statutory wage ceiling of Rs 15,000 per month, many employees’ PF contributions went up depending on what 12% of their new basic salary is.
Now, a few news reports and social media posts recently claimed that the new Employees’ Provident Funds Scheme, 2026 has made provident fund contributions above ₹1,800 a month voluntary. The impression was that employees can now reduce their PF deductions and take home a higher salary.
But this is NOT a new rule. Then what’s the confusion? Watch.
#epf #money #salary
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