New EPF Scheme 2026: Want a bigger retirement corpus? Here's how you can increase your PF savings

The provident fund system has entered a new phase with the notification of the Employees' Provident Funds (EPF) Scheme, 2026 under the Code on Social Security, 2020. While the new framework replaces the EPF Scheme, 1952, it largely preserves existing benefits while giving employees greater flexibility over retirement savings and strengthening protections for contract workers.

One of the biggest takeaways for existing EPF subscribers is that there will be no disruption to their accounts. Employees who were members under the 1952 scheme will automatically continue under the new framework, with their accumulated balances remaining protected.

The scheme also retains the mandatory contribution of 12% of wages up to the statutory wage ceiling of Rs 15,000 per month, while allowing employees to voluntarily contribute more to build a larger retirement corpus. It also continues to permit partial withdrawals for specified purposes such as medical treatment, education, marriage and housing, while requiring members to maintain a minimum retirement balance.

How should employees approach EPF contributions?

According to Raghuvar Singh, Head of Finance, Blaupunkt Audio India, the right contribution strategy depends on an employee's financial goals.

"The right EPF contribution strategy depends on your financial goals, income and retirement planning. If your objective is to accumulate a larger retirement corpus while earning a government-declared interest rate, increasing your EPF savings can be a prudent decision," Singh said.

MUST READ: EPFO revamps Unified Member Portal; UAN activation shifts to UMANG: What it means for subscribers

He added that higher EPF contributions are particularly suitable for employees who are planning for long-term retirement, prefer a low-risk investment avenue and have already built an adequate emergency fund.

Can you increase your EPF contribution?

Employees looking to boost retirement savings have two broad options—salary restructuring and the Voluntary Provident Fund (VPF).

Since EPF contributions are generally calculated on the Basic Salary and Dearness Allowance (DA), restructuring salary to increase the basic pay component can increase provident fund contributions without changing the overall cost-to-company (CTC), depending on the employer's policy.

"A common approach is to increase the Basic Salary component while proportionately reducing other allowances, keeping the overall CTC unchanged. Since EPF contributions are linked to Basic Salary, both employee and employer contributions may increase, depending on the employer's EPF policy," Singh explained.

MUST READ: Retirement after 60: Can annuities help you avoid outliving your retirement savings? Here's how

However, he advised employees to evaluate the impact on take-home salary, income tax planning, employer policies on contributions above the statutory limit and long-term retirement goals before opting for such restructuring.

How much extra can you contribute?

Employees who wish to save beyond the mandatory EPF deduction can opt for the Voluntary Provident Fund (VPF).

"An EPF member may contribute any amount above the mandatory 12%, up to 100% of the Basic Salary and Dearness Allowance, subject to the employer's payroll system supporting such deductions," Singh said.

Unlike mandatory EPF contributions, employers are not required to match the additional VPF contribution. However, the voluntary contribution earns the same government-declared EPF interest rate and remains subject to the same withdrawal and retirement rules.

MUST READ: EPS 2026 replaces EPS-95: Is the minimum EPS pension still ₹1,000? Here's what has changed

With the EPF Scheme, 2026 providing greater flexibility while retaining core retirement benefits, financial planners say employees should periodically review their EPF contributions. Those with stable incomes and long investment horizons may benefit from increasing voluntary contributions, helping build a larger retirement corpus without taking additional market risk

MUST READ: EPF Scheme 2026: What changes for your PF contribution, withdrawals or EPF interest?