The Indian government has officially notified the new Employees' Provident Fund (EPF) Scheme, 2026, under the broader Code on Social Security. This significant update, effective immediately, replaces the previous EPF Scheme, 1952, marking a modern evolution in India's social security framework.
Alongside the new EPF scheme, the Centre has also notified the Employees’ Pension Scheme, 2026, and the Employees’ Deposit Linked Insurance Scheme, 2026. While the core aspects of the EPF, such as coverage and contribution structures, largely remain consistent, the 2026 scheme introduces substantial advancements in compliance, governance, and digital integration.
Membership and Contributions
According to the notification from the Ministry of Labour and Employment on June 29, all existing members of the EPF Scheme, 1952, will automatically transition to become members of the new 2026 scheme. Additionally, any employee working in an establishment covered by this scheme is mandated to become a member from the date the scheme comes into force for that establishment or their date of joining, whichever is later.
Contribution rates for both employees and employers remain capped at 12% of wages. The scheme clarifies that for employees earning above the stipulated wage ceiling, mandatory contributions will be restricted to the ceiling amount. However, employees retain the flexibility to make voluntary contributions on wages exceeding the ceiling or at a rate higher than 12%. Employers also have the option to make matching voluntary contributions, with both parties able to reduce or discontinue these additional contributions at any time, as explained by Puneet Gupta, Partner, People Advisory Services, EY India.
Enhanced Digital Interface and Withdrawals
A key focus of the EPF Scheme, 2026, is its emphasis on a digital interface and streamlined processes. This modernization aims to improve efficiency and accessibility for all members.
The scheme also brings simplified rules for partial withdrawals, making it easier for employees to access funds for essential needs such as illness, education, marriage, housing, and other special circumstances, provided certain minimum balance conditions are met.
New Obligations for Employers
For employers, the new framework introduces enhanced governance and compliance obligations. These include stricter requirements around contractor compliance, ownership disclosures, and electronic filings. Exempted Provident Fund trusts will also face increased scrutiny and accountability under the new rules. Employers are now required to file prescribed returns within 15 days and adhere to various new reporting requirements.
PC Agrawal, a Practising Company Secretary, noted that the EPF Scheme, 2026, significantly modernizes provident fund governance by integrating digital compliance, including electronic returns, online claims, and dematerialized investments. He added that it strengthens the accountability of exempted trusts and harmonizes rules for international workers under social security agreements, aligning India’s provident fund system with the Code on Social Security, 2020, and global best practices.
International Workers Integration
International workers who were part of the 1952 scheme will also be integrated into the new EPF Scheme, 2026. Significantly, the scheme allows international workers from countries with which India has bilateral social security agreements to contribute to the EPF and benefit from detachment provisions under those agreements. The notification specifically mentions the UK and Northern Ireland in this context, anticipating the operationalization of a free trade agreement and a double contribution convention agreement later this month.