Overview
- The government has notified the Employees’ Provident Fund Scheme, 2026, which came into effect on June 29 and formally replaces the Employees’ Provident Fund Scheme, 1952.
- Mandatory contribution rates remain 12% for employers and employees but compulsory contributions are limited to the statutory wage ceiling of Rs 15,000, effectively capping the mandatory employee deduction at Rs 1,800 per month; any higher contributions must be agreed as voluntary.
- The scheme requires members to link Aadhaar, PAN and an Aadhaar-seeded bank account to their UAN and pushes EPFO services online with e-passbooks, electronic claims and prescribed digital filings by employers.
- Partial withdrawals are simplified into broader categories for illness, education, marriage, housing and special circumstances while protecting retirement savings by requiring members to retain at least 25% of their aggregate contributions after a withdrawal.
- Exempted private PF trusts and employers face stronger oversight including annual audits, trustee boards, time-limited exemptions and an interest cap of 200 basis points above the government rate, and the government has launched enrolment and amnesty drives to regularise past non-compliance as administrative guidance is finalised.