Lakhs of EPF (Provident Fund) account holders are facing rising confusion in 2025. While the government introduced new labour codes meant to overhaul PF, salary structures, and employee benefits, many of the old PF rules are still being followed in practice. This has created uncertainty among workers and employers about which rules to follow and how their contributions or benefits may change.
Why the Confusion Exists
The new labour codes promised a simplified framework, merging multiple laws into a unified structure. However, despite being passed, these codes have not been fully implemented. As a result, PF account holders still operate under the old provisions, while hearing constant updates about the upcoming changes. This overlap of old and new information has left employees unsure about withdrawal rules, contribution percentages, and tax implications.
Old PF Rules That Still Apply
Since the new labour codes are not fully notified, the existing PF rules continue. Employees still contribute a fixed percentage of their basic salary, and employers follow the same structure. Withdrawal norms, pension calculations, and nomination rules also remain unchanged. This means no employee needs to adjust their salary slips or PF contributions at this stage.
What the New Labour Codes Promise
The upcoming codes aim to change how PF contributions are calculated by including more components of salary under “wages.” This could increase the PF amount deposited each month and also impact in-hand salary. Once implemented, the codes will also streamline employee benefits, define work hours, and modernise workplace rules. But until official notification happens, nothing changes for PF members.
Impact on Employees
For now, employees need not worry about sudden changes in take-home pay or PF deposits. The transition to the new system is expected to be gradual once the government announces full implementation. However, the ongoing rumours and unclear timelines have left many employees confused and concerned about future deductions.
What PF Account Holders Should Do
Members should continue checking their PF passbooks regularly, ensure KYC details are updated, and keep track of official announcements. Until the labour codes are fully implemented, all rules, benefits, and procedures follow the old system. No one is required to make changes in contribution or salary structure yet.
Conclusion
The coexistence of old PF rules and delayed labour code implementation has created widespread confusion among employees. But the situation remains stable for now, as old rules continue unchanged. PF account holders should stay informed but avoid stress no financial impact will occur until the government announces full enforcement of the new labour codes.