The Central government notified the Employees’ Provident Fund (EPF) Scheme, 2026, replacing EPF Scheme, 1952, as part of the implementation of Code on Social Security, 2020. The new scheme came into effect on June 29, with its publication in the Gazette.
The new scheme is aimed to strengthen digital compliance, improve administrative efficiency, enhance portability of accounts, and bring the provident fund framework in line with the new labour codes. Under the new scheme, the mandatory EPF contribution remains unchanged at 12 per cent of wages each from the employee and employer, while the existing 10 per cent rate will continue to apply to notified establishments by the central government.
The Scheme also updates rules for partial withdrawals, allowing members to access funds for medical treatment, education, marriage, housing, and other specified needs, subject to maintaining a minimum balance and other prescribed conditions. The scheme also laid strong emphasis on electronic filings, online claims, e-passbooks, and Universal Account Number linkage to improve transparency and make provident fund management more efficient.