The Central government has notified the Employees’ Provident Fund (EPF) Scheme, 2026, replacing the EPF Scheme, 1952, as part of the implementation of the Code on Social Security, 2020. The new scheme came into effect on June 29, the date of its publication in the Gazette. The EPF Scheme, 2026, will replace the current schemes and provide a legally robust foundation for administering provident fund, pension and insurance benefits to central government employees.
EPF Scheme, 2026: Contribution rates remain unchanged
The new scheme aims to align the provident fund structure with the new labour codes, strengthen digital compliance, improve administrative efficiency and enhance portability of accounts. Under the new scheme, the mandatory EPF contribution remains unchanged at 12 per cent of wages each from the employee and employer. The existing 10 percent rate will continue to apply to establishments notified by the central government.
EPF Scheme, 2026: Employees can continue making VPF contributions
The Scheme has also provided greater flexibility by allowing employees to continue making voluntary provident fund (VPF) contributions above the statutory limit.
EPF Scheme, 2026: Rules for partial withdrawals
The scheme has updated the rules for partial withdrawals, allowing members to access funds for medical treatment, education, marriage, housing and other specified needs. The rules are subjected to maintaining a minimum balance and other prescribed conditions.
EPF Scheme, 2026: Emphasis on digital process
The scheme has laid strong emphasis on digital processes. The scheme lays focus on electronic filings, online claims, e-passbooks and Universal Account Number (UAN) linkage to improve transparency and make provident fund management more efficient.
EPF Scheme, 2026: Government can temporarily reduce EPF during emergencies
The Scheme gives the central government the power to temporarily reduce or defer EPF contributions during exceptional situations such as pandemics, epidemics and national disasters.
EPF Scheme, 2026: Exempted EPF trusts to follow stricter rules
The EPF Scheme, 2026 introduces a detailed governance framework for companies that operate their own exempted provident fund trust and covers among other things the eligibility and composition of trustees, electronic accounting, annual audits and online disclosures.
EPF Scheme, 2026: Existing members move automatically
The Scheme has ensured a smooth transition for existing EPF subscribers. These members will automatically become members under the EPF Scheme, 2026. There will be no impact on their accumulated corpus. Eligible new employees will continue to be brought under the EPF coverage.
EPF Scheme, 2026: UAN rules remain unchanged
The Universal Account Number (UAN) will continue to serve as the permanent identifier for every EPF member. This will ensure seamless portability of accounts when employees change jobs.
