As part of the implementation of the Code on Social Security, 2020, the Ministry of Labour and Employment announced the Employees’ Provident Fund (EPF) Scheme, 2026, which would replace the six-decade-old EPF Scheme, 1952.
The new framework went into effect on June 29, 2026, the day it was published in the Gazette and announced under the Code on Social Security, 2020. The program adds new regulations centred on digital compliance, governance, and administrative efficiency while keeping the current provident fund structure, including contribution rates and membership requirements.
Rates of Contribution
The employer and employee are still required to contribute 12% of their respective earnings to the Employee Provident Fund (EPF). Establishments notified by the Central Government will continue to be subject to the current 10% payment rate. Additionally, the statutory wage ceiling framework has been maintained, which means that mandatory contributions will remain tied to the wage cap announced by the Center.
“The employer’s contribution, under this Scheme shall be at the rate of twelve percent of the wages payable to the employee, to whom this Scheme applies, and the employees’ contribution shall be equal to the employer’s contribution in respect of such employee: Provided that the rate of contribution shall be ten percent in respect of the class of establishments notified by the Central Government in this regard,” the ministry announced.
Additionally, the 2026 plan offers more flexibility by permitting workers to continue contributing to the voluntary provident fund (VPF) above the legal cap. Although they are not obligated to, employers may decide to match these additional payments.
Membership Persists
Current EPF users won’t be impacted by the switch to the new plan. In order to maintain retirement savings and account balances, members covered by the EPF Scheme, 1952 will be automatically transferred to the EPF Scheme, 2026. Once they are eligible, employees who join covered establishments in the future will remain registered.
“Every employee who was a member of the Employees’ Provident Funds Scheme, 1952 or was required to become a member until the date of cessation of that Scheme shall become a member of this Scheme,” according to the Gazette.
For exempted businesses running their own provident fund trusts, the notification imposes stricter compliance requirements. These trusts will have to follow more stringent governance guidelines, handle claims digitally, store electronic records, give member accounts online access, and make frequent disclosures. Additionally, they must allow online claim settlement within the allotted time frames and provide yearly account summaries electronically.
The Gazette requires trustees to provide yearly statements, keep accounts electronically, and give staff members internet access to their balances.
UAN Is Still a Permanent Identification
Every EPF member will continue to be permanently identified by their Universal Account Number (UAN), which enables accounts to be transferred when workers switch jobs.
“The employer shall facilitate the generation of a UAN by any employee, in case the employee fails to do so on the portal, to which the member account shall be linked,” the notification states.
What Salaried Workers Should Know
The announcement has no effect on salaried employees’ provident fund contributions. In order to improve transparency and streamline account management while maintaining the fundamental retirement benefit structure, it instead concentrates on modernising the administration of EPF through increased digital compliance, improved oversight of exempt PF trusts, and smooth continuity under the Social Security Code.
