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LatestCorporate Compliance 29 September 2026

India PF Rules Shift: Withdrawal, Interest & Wage Ceiling Updates

The Indian government is overhauling provident fund regulations with new withdrawal limits for garment workers, revised EPF/EPS contribution rules tied to a Rs 20,000 wage ceiling, and upcoming changes to interest rates on EPF, PPF and bank fixed deposits slated for October 2026. These moves affect employee benefits, housing loan withdrawals, and tax filing for interest income, prompting protests and prompting workers to seek clarity on future earnings.

Key regulatory changes
- New PF withdrawal rules in Karnataka sparked protests by garment workers in Maddur. Read more
- EPF and EPS contributions will be recalibrated from October 2026 based on a Rs 20,000 wage ceiling. Details
- Interest rates for EPF, PPF and bank fixed deposits may shift in the Oct‑Dec 2026 quarter. Insights

Implications for workers
- Employees can still withdraw PF funds for house purchase, building or repair, subject to eligibility limits. Guide
- PF accounts remain interest‑bearing even if the holder quits the job. Info
- Taxpayers must declare PF interest income for FY 2024‑25 within the updated ITR filing window. How‑to
- Labour codes awareness campaigns are rolling out to educate workers on these changes. Read

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India PF Rules Shift: Withdrawal, Interest & Wage Ceiling Updates | Legal Suvidha