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Why Your September Salary Was Less: The Hidden Government Rule Behind PF Deduction!
N
News18•03-10-2026, 08:46
Why Your September Salary Was Less: The Hidden Government Rule Behind PF Deduction!
- •Don't panic if your September salary was less; your money hasn't been lost.
- •The Employees' Provident Fund Organization (EPFO) has increased the maximum basic salary limit for PF deduction from Rs 15,000 to Rs 25,000 per month.
- •Under this new rule, for employees with a basic salary of Rs 25,000 or more, 12% PF is now deducted based on Rs 25,000 instead of Rs 15,000.
- •This change has reduced the take-home salary by Rs 1,200 per month, as the PF deduction increased from Rs 1,800 to Rs 3,000.
- •In the long run, this benefits employees as an additional Rs 2,400 (your Rs 1,200 + company's Rs 1,200) is deposited into your PF account monthly, and your post-retirement pension will also increase.
Key Questions Answered
The Employees Provident Fund Organization increased the maximum basic salary limit for PF deductions from Rs 15,000 to Rs 25,000 per month.
Under the new rule, the mandatory 12 percent PF deduction is now calculated on Rs 25,000 instead of Rs 15,000, raising the monthly employee contribution from Rs 1,800 to Rs 3,000 and decreasing take-home pay by Rs 1,200.
In addition to your own extra contribution, your company deposits an additional Rs 1,200 monthly into your PF account, creating total monthly savings of Rs 2,400 while also boosting your post-retirement pension amount through the Employee Pension Scheme.
