Employees’ Provident Funds Scheme, 2026: The Ministry of Labour and Employment has notified the Employees’ Provident Funds Scheme, 2026. This has been notified by the government under the Code on Social Security, 2020. It replaces the longstanding Employees’ Provident Funds Scheme, 1952. Although the overall provident fund framework remains largely unchanged, the revised EPF scheme introduces some changes that relate to contributions, benefits and compliance requirements. It also includes special amnesty provisions which are aimed at addressing past compliance lapses and resolving long-pending issues.According to Puneet Gupta, Partner, People Advisory Services, EY India, the new Employees’ Provident Fund Scheme, 2026 represents a major milestone in the next phase of implementation of the labour codes.Also Read | EPFO 3.0: ATM, UPI-linked withdrawals, faster claim settlement & more – what reforms will mean for subscribers “Coming into effect immediately, it modernises the provident fund framework through greater digitalisation, simplified processes and enhanced compliance requirements for both employers and employees,” he says.From an employee’s perspective, some of the most notable changes relate to withdrawals and access to savings. Members will be able to make partial withdrawals under simplified rules for essential needs such as illness, education and marriage, as well as for housing requirements and specified special circumstances, subject to prescribed conditions and maintenance of a minimum balance. Employees are also required to provide Aadhaar, PAN and Aadhaar-seeded bank account details. The Scheme further clarifies that employees whose wages exceed the statutory wage ceiling may continue to remain outside mandatory PF coverage unless both the employer and employee opt for coverage, he says. We take a look at top things employees should know:
Coverage and membership
The EPF Scheme, 2026 is aimed at ensuring continuity by providing that all employees who were members under the Employees’ Provident Funds Scheme, 1952 will automatically continue as members under the new framework. It also retains the existing treatment of employees whose wages were more than the prescribed wage ceiling at the time they become eligible for membership under the Code on Social Security, 2020. Such employees will continue to be classified as “excluded employees”, meaning the wage ceiling-based exclusion criteria remain unchanged.
EPF Contribution
Under the EPF Scheme, 2026, both employers and employees are required to contribute 12% of wages towards the provident fund. The EPF scheme also makes it clear that if an employee’s wages are more than the statutory wage ceiling, then the mandatory provident fund contributions will be calculated only up to the prescribed ceiling amount.At the same time, employees can choose to contribute voluntarily on wages above the statutory ceiling or contribute at a rate which is higher than the mandatory 12%. Employers can also choose to match these voluntary contributions if they choose to do so. There is now an explicit provision that allows either the employee or the employer to reduce or stop the extra voluntary contributions at any point. This offers greater flexibility in retirement planning.The EPF scheme further provides that employers must pay the applicable administrative charges on the wages against which voluntary provident fund contributions are made.
Withdrawals and partial withdrawals
The EPF Scheme, 2026 permits full withdrawal of provident fund for specified events, including retirement, permanent migration from India, taking up employment overseas, and other prescribed situations. In general, a member’s enrolment under the EPF scheme continues until the balance standing to his or her credit is withdrawn.The new EPF scheme also simplifies the rules governing partial withdrawals. Members can access a portion of their provident fund savings for specified purposes such as illness, education, marriage, housing-related needs and other notified special circumstances, subject to the prescribed conditions. However, they must continue to maintain a minimum balance equivalent to 25% of the total contributions accumulated in the provident fund.
Compliance requirements
The EPF Scheme, 2026 introduces a detailed compliance framework for employers, covering one-time, periodic and event-specific filing requirements. Among the key obligations is the submission of a consolidated return in Form V within 15 days from the date the EPF Scheme becomes applicable. The return must include prescribed information for all employees, such as their Aadhaar number, Permanent Account Number (PAN), Universal Account Number (UAN), gross wages and EPF wages. However, it is yet to be clarified whether this filing requirement also applies to establishments that are already covered under the provident fund framework.
