LatestIncome Tax 18 September 2026
Wage Ceiling Rise Won’t Reduce Salary
The recent increase in the wage ceiling under India's new tax regime raises concerns about higher EPF contributions, but experts confirm that employers cannot deduct the extra amount from employees' take‑home pay, so net salaries remain unchanged.
Employers are barred from passing the increased EPF contribution onto employees, meaning your in‑hand salary stays the same despite the higher wage ceiling.
- The wage ceiling hike raises the statutory EPF contribution rate.
- Under the new tax regime, the additional EPF amount is absorbed by the employer.
- Employees retain their full take‑home pay, as confirmed by EY India partner Puneet Gupta.
For full details, see the original article here.
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