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 Mint is an Indian financial daily newspaper published by HT Media. The Mint YT Channel brings you cutting edge analysis of the latest business news and financial news. With in-depth market coverage, explainers and expert opinions, we break down and simplify business news for you. Click here to download the Mint App: https://livemint.onelink.me/MrDS/p0kx... Now make Mint your preferred source on Google and get business & finance updates first. Add here - https://www.google.com/preferences/so... Subscribe to Mint Premium Now: https://www.read.ht/Scaq Subscribe to Mint's WhatsApp Channel: https://whatsapp.com/channel/0029Va91...