New EPF Scheme 2026 notified as part of Code on Social Security

The Centre has notified the new Employees’ Provident Fund (EPF) Scheme, 2026, under the Code on Social Security. The EPF Scheme, 2026, supersedes the 1952 scheme and is effective immediately. It has also notified the Employees’ Pension Scheme, 2026 and Employees’ Deposit Linked Insurance Scheme, 2026.

While the broad contours of the new EPF scheme remain the same, in terms of coverage and contributions, it brings in new measures for compliance and governance along with a focus on digital interface.

“Every employee, who was a member or was required to be a member of the EPF Scheme, 1952 till the date of cessation of the said Scheme, shall be a member of this Scheme,” said the notification by the ministry of labour and employment on June 29 with regard to membership of the scheme. Further, every employee, employed in or in connection with the work of an establishment, to which this Scheme applies, is entitled and required to become a member of the Fund from the day this scheme comes into force in such establishment or from the date of joining the establishment, whichever is later, the ministry has said.

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International workers who are a part of the EPF, 1952 will also be a member of the new scheme. Significantly, it has also said that international workers from countries that have a bilateral agreement on social security contributions with India can also contribute to the EPF scheme 2026 if they are willing to take benefit of detachment under the said agreement. It lists UK and Northern Ireland under this provision, with which India is set to operationalise the free trade agreement and the double contribution convention agreement later this month.

Contributions for employees and employers remain capped at 12% of wages under the new scheme, it specifies that mandatory contributions in respect of employees earning above the wage ceiling will be restricted to the wage ceiling amount.
“Employees may, however, make voluntary contributions on wages exceeding the wage ceiling or contribute at a rate higher than the prescribed 12%. Employers may also choose to make matching contributions. Importantly, both employees and employers have the flexibility to reduce or discontinue such additional voluntary contributions at any time,” explained Puneet Gupta, Partner, People Advisory Services, EY India.

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For employees, the Scheme also includes new provisions on partial withdrawals through simplified rules for essential activities and needs like illness, education and marriage as well as for housing and other special circumstances, with prescribed conditions including maintenance of a minimum balance.

“For employers, the new framework introduces enhanced governance and compliance obligations, particularly around contractor compliance, ownership disclosures, electronic filings and exempted PF trusts,” noted Gupta, adding that the new framework introduces enhanced governance and compliance obligations, particularly around contractor compliance, ownership disclosures, electronic filings and exempted PF trusts. Employers are also required to file prescribed return within the next 15 days and comply with various new reporting requirements.

PC Agrawal, Practising Company Secretary and Registered Trade Mark Agent noted that the EPF Scheme, 2026 modernises provident fund governance and integrates with digital compliance (electronic returns, online claims, demat investments).

“Strengthens accountability of exempted trusts. Harmonises rules for international workers under social security agreements. This marks a major step in aligning India’s provident fund system with the Code on Social Security, 2020 and global best practices,” he said in a post on LinkedIn.

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