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EPFO Caps Mandatory PF Contribution at Rs 1,800 on Rs 15,000 Wage Ceiling

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The Employees' Provident Fund Organisation (EPFO) has introduced a new rule set to take effect in 2026. Under this change, mandatory provident fund contributions will be calculated only on the statutory wage ceiling of Rs 15,000 per month. This means the compulsory PF deduction will be capped at Rs 1,800 monthly, which is 12% of the Rs 15,000 ceiling. Employees earning above this threshold will not have mandatory contributions calculated on their full salary. The move is expected to directly affect the take-home pay and retirement savings structure of salaried workers across India.

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