The Ministry of Labour and Employment has notified the Employees’ Provident Funds (EPF) Scheme, 2026, effective from 1 July 2026, under the Code on Social Security, 2020. The new Scheme replaces the old EPF Scheme, 1952, while retaining the existing provident fund intact. Its primary objective is to update compliance through digital processes, strengthening the governance and enhancing employer accountability.
- Continuity for Existing Members
Employees already covered under the EPF Scheme, 1952 will remain intact without any changes along with the concept of “exclude employee” considering the ceiling of ₹15,000 per month. Employees earnings crossing the threshold of ₹15,000 per month are generally not required to become EPF members unless they are existing members or voluntarily opt in accordance with the Scheme.
- Contribution Structure
The contribution concept remains the same. Both employers and employees are required to contribute 12% of eligible wages, subject to the prescribed wage ceiling. Both Employer and Employees may continue to make voluntary higher contributions beyond the statutory requirement if they choose. Accordingly, there are no major changes impacting the organisations arising from the revised Scheme.
- Simplified Withdrawal Rules
The Scheme simplified the rules for provident fund withdrawals. Members may continue to withdraw deposited funds for various purposes such as retirement, permanent settlement abroad, overseas employment, medical treatment, education, marriage, purchase or construction of a house, and other approved contingencies. Certain partial withdrawals may remain subject to prescribed conditions, including minimum balance or service requirements.
- Increased Responsibility of Principal Employers
One of the major changes relates to workers engaged through contractors. The Scheme pushes the responsibility of the principal employer for ensuring provident fund compliance for contract labour. Where a contractor fails to deposit contributions or comply with statutory requirements, the principal employer may still be liable for the responsibility. Organisations engaging contract workers should therefore make sure that contractors are complying with the prescribed rules and regulations.
- International Workers
The law continuing to be enforced for the international workers under the new framework. Employers engaging foreign employees in India or deputing Indian employees to countries covered by applicable Social Security Agreements (SSAs) should review their compliance obligations to ensure proper coverage, contribution, and exemption wherever applicable.
- Governance of Exempted PF Trusts
Employers managing the exempted provident fund trusts will be subject to enhanced governance standards. The Scheme introduces strict requirements relating to timely renewal of exemptions, annual audits, record maintenance and additional reporting obligations. These steps are intended to improve transparency and overseeing of exempted establishments.
- Digital Compliance Framework
Employers are required to maintain and submit employee information, contractor details, authorised signatory particulars, and monthly returnsthrough electronic platforms. Aadhaar, PAN, Universal Account Number (UAN), and Aadhaar-linked bank accounts are expected to reduce compliance gaps.
Transition steps
To help smooth implementation, the Government has introduced three supportive steps:
- Employees’ Enrolment Campaign, 2026 – to encourage enrolment of eligible employees and establishments under EPF.
- VISHWAS, 2026 – to resolve long pending compliance disputes with reduced damages.
- AMNESTY, 2026 – to enable employers, particularly exempted PF trusts, to regularise previous default of compliance.
How Eurofast can help
Eurofast can help businesses to comply with the EPF Scheme, 2026 by providing end-to-end support, including EPF registration, payroll processing, monthly ECR filings, contractor compliance reviews, digital reporting, compliance health checks, and timely advisory to ensure hassle-free statutory compliance.
Author: Chetan Sharma
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