A key change concerns eligibility for tax exemption. Under the new framework, PF trusts will be recognised under the Income Tax Act, 2025, only if they are exempt under Section 17 of the EPF Act, 1952.
Tax experts say the new rules will significantly influence how taxpayers file returns, disclose income, manage penalties and prosecutions, comply with TDS provisions and respond to tax notices in the coming financial year.
EPFO will allow it subscribers to gain faster access to their provident fund savings, with the facility to withdraw EPF directly into their bank accounts through a UPI-based payment gateway expected to roll out by April this year. The labour ministry is developing a system under which a portion of the EPF balance will remain locked in, while a substantial share can be withdrawn seamlessly via the Unified Payments Interface.
EPFO has simplified partial withdrawal rules by merging multiple provisions into a single, easy framework, ending confusion and delays. Members can now withdraw up to 75% of their balance for eligible needs, while 25% remains invested for retirement security.
Under the revised framework, wages include basic pay, dearness allowance and retaining allowance. If these components together fall short of the 50 per cent threshold, employers are required to add the difference to ensure compliance.
AAP MP Raghav Chadha sat down with delivery riders from Zomato, Swiggy, Blinkit and other platforms for a candid conversation on the realities behind instant commerce. This was not a rant, but a listening exercise with workers whose labour powers everyday convenience. Riders spoke about long login hours, shrinking incentives, rising fuel and maintenance costs, lack of PF and ESI benefits, arbitrary ID blocks, and weak support systems. Chadha stressed that these companies were built not just on algorithms, but on human effort and sacrifice. He called for guaranteed minimum earnings for logged-in hours, fuel compensation, social security benefits, and accountability from platforms. The message was clear: the gig economy cannot become a guilt-free exploitation economy.
The Employees' Provident Fund Organisation has been working on several initiatives over the last few years to ensure a smoother experience for its subscribers. It is now taking that a step further with its next set of reforms.
At the core of the reform is a uniform definition of “wages”, limited to basic pay, dearness allowance and retaining allowance, which must together form at least 50% of an employee’s CTC—reshaping salary structures, taxation and retirement savings. All other components, including HRA, bonuses, commissions and incentives, are capped, with any excess automatically reclassified as wages, curbing salary splitting and standardising wage calculations.
Union Labour Minister Mansukh Mandaviya announced that EPFO subscribers will soon be able to withdraw their provident fund directly through ATMs and UPI, eliminating lengthy paperwork. He said the new digital withdrawal options are expected to be rolled out before March 2026. The move aims to make EPF access faster, simpler and more member-friendly.
Under the new framework, social security-linked contributions such as statutory PF, NPS contributions (where applicable), gratuity and other retirement-linked benefits are expected to increase for many employees, especially where existing salary structures do not meet the prescribed 50% threshold.
Under the new framework, wages, comprising basic pay, dearness allowance (DA) and retaining allowance, must account for at least 50% of total remuneration.





