Since the central government notified the EPF 2026 scheme last week, many EPFO subscribers are wondering if the government has also modified the rules regarding the contributions for the Employees’ Provident Fund (EPF) and Voluntary Provident Fund (VPF) for both employees and employers.

Or did the government simply rename the scheme while keeping all the previous rules from the 1952 EPF scheme?

Or perhaps the government has made some partial changes under the new framework?

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EPF vs VPF: What are the differences?

EPF vs VPF: Have EPF contribution rules changed for employees and employers?

Puneet Gupta, partner, people advisory services, EY India, told ET Wealth Online that the EPF 2026 largely retains the existing contribution structure.

“Under Paragraph 18, both the employer and the employee are required to contribute 12% of the employee’s wages, subject to the statutory wage ceiling notified by the government. While the new scheme contemplates a notified wage ceiling for contributions, until further notification, the existing ceiling of Rs 15,000 per month may continue to apply,” says Gupta.

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Gupta elaborates that when an employee’s salary exceeds the wage ceiling, the mandatory contribution from both the employer and employee are typically limited to the contribution payable on the wage ceiling, unless a higher contribution arrangement is adopted under the scheme.

EPF vs VPF: Have VPF contribution rules changed for employees and employers?

According to Gupta, Paragraph 19 introduces greater flexibility for voluntary provident fund contributions.

“Employees may choose to contribute on wages exceeding the statutory wage ceiling at the statutory rate of 12% or at a higher rate. This is effectively the Voluntary Provident Fund (VPF) mechanism under the new framework,” says Gupta.

However, the employer is not required to match these additional voluntary contributions, although they can choose to contribute more if they wish, explains Gupta.

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Crucially, both the employee and employer can later decide to lower or stop these additional voluntary contributions, Gupta adds.

EPF vs VPF: Key features explained under EPF 2026 scheme

Source: Puneet Gupta, EY