Making major changes in the rules related to Employees’ Provident Fund (EPF), the Central Government has notified the Employees’ Provident Fund Scheme, 2026. Along with this, a new scheme has now been implemented in place of the EPF Scheme 1952, which was in effect since 1952. This new system has been brought under the Code on Social Security, 2020. However, this will not affect the account, deposit amount or benefits received so far of existing EPF account holders.
The objective of the new scheme is to make the EPF system more digital, transparent and accountable. The government has made it clear that the most important rules for employees, such as interest on EPF, 12% contribution, UAN and withdrawal rules will remain the same as before.
Emphasis will be on digital services and transparency
Digital processes have been formally given legal recognition in the EPF Scheme 2026. Now services like online return filing, digital record keeping, online claim submission, electronic annual statement issuance and digital inspection will be part of the new scheme. With this, EPFO’s services are expected to become easier and more transparent than before.
Rules will be strict on exempted trusts
In the new scheme, strict rules have also been made for those companies which operate their own EPF trust instead of EPFO. More stringent compliance rules will now apply in matters such as appointment of trustees, regular meetings, electronic accounting, annual audit, investment reporting and online disclosures. Provision has also been made for action in case of delay in reporting.
Government gets special powers during disaster
Under the new scheme, the Central Government has been given the right to temporarily reduce or defer EPF contributions for a maximum of three months in case of epidemic, national disaster or other extraordinary circumstances. However, this is only for emergency situations and there will be no change in the permanent contribution system of EPF.
What hasn’t changed?
Despite the implementation of the new EPF Scheme 2026, many important rules for the employees will remain the same as before. Both employee and employer will continue to contribute 12-12%. Voluntary Provident Fund (VPF) facility will also be available as before. There has been no change in the salary limit and the Universal Account Number (UAN) will remain the permanent identity of every member. Apart from this, all the major facilities available on EPF like interest rate, withdrawal rules, nomination, tax benefits and balance transfer will also continue as before.
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