The Employees’ Provident Funds (EPF) Scheme, 2026 is India’s new statutory provident fund framework replacing the Employees’ Provident Funds Scheme, 1952. It has been notified under the Code on Social Security, 2020 to modernize provident fund administration while retaining existing retirement benefits. The Scheme is administered by the Employees’ Provident Fund Organisation (EPFO) under the Ministry of Labour and Employment.

Key Features

Replacement of the 1952 Scheme

• Supersedes the Employees’ Provident Funds Scheme, 1952.
• Brings provident fund administration under the Code on Social Security, 2020.

Seamless Continuity for Existing Members

• Existing EPF subscribers automatically continue as members.
• No fresh enrolment is required.
• No transfer of accumulated provident fund balances is necessary.

Contribution Rules

• Employer and employee continue to contribute 12% of wages.
• Contribution rate remains 10% for notified establishments.
• Mandatory contributions apply only up to the statutory wage ceiling of ₹15,000 per month.
• Thus, the mandatory contribution remains ₹1,800 each (12% of ₹15,000).

Voluntary Higher Contributions

• Employees may voluntarily contribute:
  • Above the statutory wage ceiling, or
  • At rates exceeding 12%.
• Employers may provide matching voluntary contributions.
• Additional voluntary contributions can later be reduced or discontinued.

Simplified Withdrawal Categories

• The earlier 13 withdrawal categories have been rationalized into three broad categories—Essential Needs (illness, education, and marriage), Housing Needs (purchase, construction, home loan repayment, and renovation), and Special Circumstances covering specified emergencies. This simplifies withdrawal procedures while retaining flexibility 

Minimum Retirement Corpus

• Members must retain 25% of their total contributions as a minimum retirement corpus.
• The remaining eligible balance may be withdrawn subject to Scheme conditions.

Withdrawal Provisions

Protection for Contract Workers

• Introduces the concept of the Principal Employer. The principal employer remains ultimately responsible for PF contributions where contractors fail to comply.

Employer Compliance
Employers are required to submit essential statutory information, including Aadhaar, PAN, Universal Account Number (UAN), wage details, and both monthly and event-based statutory returns. These requirements enhance compliance, transparency, and record management. 

Digital Governance

• Greater emphasis on Aadhaar-linked UAN and bank accounts.
• Supports faster withdrawals and portability.
• EPFO is enabling:
  • UPI-based withdrawals.
  • WhatsApp-based member services.

International Workers

• Existing provisions for international workers continue.
• Existing international members remain covered under the new framework.

Retirement Corpus Protection

• Partial withdrawals are permitted while ensuring preservation of long-term retirement savings through the mandatory minimum balance.