The Employees’ Provident Fund (EPF) Scheme, 2026 was notified by the Ministry of Labour and Employment on 29 June 2026, framed under Section 15 of the Code on Social Security, 2020, replacing the Employees’ Provident Fund Scheme, 1952. It applies to every establishment covered under Chapter III of the Code, as well as to certain government-owned or government-controlled establishments whose employees don’t already enjoy contributory provident fund or old-age pension benefits.
Membership and Coverage. The Scheme automatically carries forward everyone who was a member of the 1952 Scheme, and requires every eligible employee to join the Fund from the day the Scheme applies to their establishment or from their date of joining, whichever is later. “Excluded employees” (those earning above the notified wage ceiling Rs. 15,000) and exempted employees become members the moment they cease to fall in those categories. International Workers get a parallel membership framework, including special provisions for detached workers under bilateral social security agreements — currently, the United Kingdom is the only country listed in this category.
Exemption Framework. Establishments or employees can seek exemption from the Scheme where their own private provident fund rules are as good as or better than the statutory benefits. Exempted establishments must set up an employer-chaired board of trustees, maintain electronic accounts, get annual audits, invest funds as directed by the Government, and settle claims within prescribed timelines. Exemption is initially granted for three years, is normally renewed automatically if conditions are met, and comes with detailed rules on fund transfers, penalties for default, and cancellation for violations.
Also read – Government Notifies New EPF, EPS and EDLI Schemes 2026: Major Reform in India’s Social Security Framework
Contribution Structure. Both employer and employee must ordinarily contribute 12% of wages each (10% for certain notified classes of establishments), calculated on wages up to the statutory wage ceiling. Employees may also make additional voluntary contributions above the ceiling, which employers can optionally match. The Central Government retains power to defer or reduce contribution rates for up to three months during pandemics, epidemics, or national disasters. Employers are responsible for depositing both shares along with administrative charges within fifteen days of the month’s close, and cannot deduct their own share from employee wages.
Digital Compliance and Duties. The Scheme leans heavily on electronic administration — employers must file monthly returns, generate Universal Account Numbers (UANs) for employees, issue e-Passbooks, upload ownership details, and remit contributions via Electronic Challan-cum-Return. Employees must furnish Aadhaar, PAN, bank account, and UAN details. Principal employers and contractors share joint responsibility for contractual workers’ dues.
Interest and Accounts. Interest is credited annually to each member’s account on a monthly running balance basis, at rates determined by the Central Government. Separate accounts are maintained for the Fund, administration expenses, and interest, with annual audits by the Comptroller and Auditor General.
Withdrawals and Advances. Members can make partial withdrawals (minimum ₹1,000) for specified purposes — illness, education, marriage, and housing needs — subject to caps expressed as a percentage of their “Eligible Member Balance” (total balance minus a mandatory 25% minimum balance), with limits on how many times each type of withdrawal can be availed. Special-circumstance withdrawals are allowed up to twice a year. Full withdrawal of accumulated balance is permitted on retirement after age 55 (58 for International Workers), permanent incapacity, emigration, retrenchment, or after a continuous break in covered employment of twelve months (with an exception for women resigning to marry).
Nomination and Death Benefits. Members must nominate beneficiaries electronically; nominations in favour of non-family members are invalid if the member has a family, and marriage automatically invalidates prior nominations. On death, accumulated funds go to nominees, or in their absence, to family members in a defined order of priority. A notable safeguard bars a person charged with murdering the member from receiving benefits until the criminal case concludes.
Claims Processing. Claims must be filed through a designated online portal and settled within twenty days; delays attract penal interest of 12% per annum, chargeable to the responsible Commissioner’s own account — a strong accountability measure. Inoperative accounts (unclaimed for 36 months after becoming payable) are moved to a separate account, though interest continues to accrue until claimed.
Special One-Time Provisions. The Scheme carries three notable transitional measures:
- Employees’ Enrolment Campaign, 2026 – valid until 31 October 2026, letting employers retroactively enrol employees who joined between April 2009 and March 2026 but were never registered, with waived employee-side contributions and nominal ₹100 damages instead of the full penalty.
- VISHWAS, 2026 – a six-month (extendable) window offering reduced damages for pre-June 2024 contribution defaults, aimed at settling long-pending disputes.
AMNESTY, 2026 – a parallel six-month scheme regularising establishments that have been informally running provident fund trusts (recognised under the Income Tax Act) without formal exemption notification, allowing retrospective regularisation subject to audits and compliance conditions.
