India’s new EPF Scheme 2026 ends the automatic rule requiring employees and employers to each put 12% of basic wages into the provident fund. Tax experts Puneet Gupta of EY India and Parizad Sirwalla of KPMG explain that companies and staff can now choose to contribute just ₹1,800 a month instead, giving employees more take-home pay but potentially shrinking retirement savings. The scheme also stretches the waiting period for full PF withdrawal after leaving a job from two months to one year, while still allowing partial withdrawals of up to 75% for specific needs like education, illness, and housing.
First Published: Jul 9, 2026 4:27 PM IST
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