Government Clarifies PF Deductions Under New Labour Codes

The Central Government has clarified that the new Labour Codes will NOT reduce take-home salary for employees whose Provident Fund (PF) deductions are calculated on the statutory wage ceiling.

PF contributions will continue to be calculated on the existing wage ceiling of ₹15,000, meaning employees earning above this amount will not face any compulsory increase in PF deductions. Any PF contribution beyond ₹15,000 remains voluntary and not mandatory.

Officials stated that the intention of the new Labour Codes is to streamline labour laws, not to reduce take-home earnings. This clarification has eased concerns among workers who feared reduced salaries under the revised framework.