Centre Notifies EPF Scheme, 2026; New Rules Take Effect From June 29
New framework replaces the 1952 scheme under the Social Security Code while retaining existing contribution rates.
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 following its publication in the Gazette.
The EPF Scheme, 2026 aims to modernise the provident fund system by strengthening digital compliance, improving administrative efficiency, enhancing portability of accounts, and aligning the framework with the new labour codes.
The mandatory EPF contribution remains unchanged under the new scheme. Employees and employers will continue to contribute 12 per cent of wages each towards the provident fund. The existing 10 per cent contribution rate will continue to apply to establishments notified by the Central government.
The scheme also revises provisions relating to partial withdrawals, allowing members to access their provident fund savings for medical treatment, education, marriage, housing, and other specified purposes. Such withdrawals will be subject to prescribed conditions, including maintaining a minimum balance.
A key feature of the new framework is its emphasis on digital processes. The scheme mandates electronic filings, online claim settlements, e-passbooks, and integration with the Universal Account Number (UAN) to improve transparency, streamline operations, and make provident fund management more efficient.
The notification marks a significant step in implementing the labour reforms introduced under the Code on Social Security, 2020, while retaining the core provident fund contribution structure for employees and employers.
