{"id":111068,"date":"2026-07-03T11:20:16","date_gmt":"2026-07-03T05:50:16","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=111068"},"modified":"2026-07-03T11:30:05","modified_gmt":"2026-07-03T06:00:05","slug":"new-epf-scheme","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/new-epf-scheme\/","title":{"rendered":"New EPF Scheme 2026, Changes for PF and Pension Subscribers"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><strong>New EPF Scheme Latest News<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The government has notified the Employees\u2019 Provident Funds Scheme, 2026 and the Employees\u2019 Pension Scheme, 2026, replacing the older frameworks and bringing them under the Code on Social Security, 2020.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>EPF and EPS in India<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Employees\u2019 Provident Fund (EPF) is one of India\u2019s most important social security and retirement savings mechanisms for organised sector workers. It is managed by the <\/span><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/employees-provident-fund-organisation-epfo\/\" target=\"_blank\"><span style=\"font-weight: 400;\">Employees\u2019 Provident Fund Organisation<\/span><\/a><span style=\"font-weight: 400;\"> (EPFO) under the Ministry of Labour and Employment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Under the EPF system:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Employees contribute a fixed share of their wages every month<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Employers make a matching contribution<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The savings earn annual interest declared by EPFO<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Workers can make partial withdrawals for specified purposes and receive the accumulated amount at retirement or exit<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Alongside EPF operates the Employees\u2019 Pension Scheme (EPS), which provides monthly pension benefits after retirement, subject to service conditions. Together, EPF and EPS form the backbone of formal sector retirement security in India.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><b>new EPF Scheme, 2026 replaces the old Employees\u2019 Provident Funds Scheme, 1952<\/b><span style=\"font-weight: 400;\">, while the <\/span><b>EPS 2026 replaces the earlier Employees\u2019 Pension Scheme, 1995 and the Employees\u2019 Family Pension Scheme, 1971<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Employees\u2019 Provident Fund Scheme, 2026<\/strong><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The biggest change is legal and administrative, not structural. The provident fund framework has now formally moved from the old 1952 law to the Code on Social Security, 2020.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For existing subscribers:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">PF balances remain unchanged<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Universal Account Numbers (UANs) continue<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Past contributions remain valid<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Existing benefits continue without interruption<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Greater Digitalisation<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">One of the major shifts under the 2026 scheme is the formal recognition of the digital systems that EPFO has gradually built over time. These include:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Online filing of employer returns<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Electronic maintenance of records<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Digital member accounts<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Online claim processing<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Electronic annual statements<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Digital inspections<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">This means PF administration will increasingly rely on digital compliance and online service delivery.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>New Withdrawal Structure Incorporated<\/b><\/li>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Changes that EPFO had already announced in 2025 have now been formally incorporated. Withdrawal categories have been streamlined from 13 to 3 broad heads:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Essential needs such as illness, education, and marriage<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Housing needs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Special circumstances<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><span style=\"font-weight: 400;\">Under the new scheme:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">For illness of self or family members, members can withdraw up to 100% of eligible member balance after 12 months of membership. Since 25% must remain as minimum balance, this effectively allows withdrawal of 75% of total funds. The full amount can be withdrawn after one year of unemployment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">For education of self and family members, withdrawal is allowed after 12 months of total membership, up to 10 times during membership.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">For marriage of self or family members, members may withdraw up to 100% of eligible member balance, with such withdrawals limited to 5 times during membership.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">For housing purposes, purchase, construction, repayment of home loan, or renovation, members can withdraw up to 75% of total funds after 12 months of membership, with withdrawals limited to 5 times.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Contract Workers and Principal Employer<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">For the first time, the scheme explicitly introduces the concept of the principal employer for contract workers. Where workers are employed through contractors who are not independently registered, the employer must initially pay both:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">The employer\u2019s contribution<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">The employee\u2019s contribution<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Along with applicable administrative charges, within 15 days of the close of every month.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Even where a contractor makes the PF payment, the ultimate responsibility remains with the principal employer.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Flexibility in Voluntary Contributions<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The new scheme expressly provides that employees may:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Contribute on wages above the statutory wage ceiling<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Contribute at a rate higher than 12% through Voluntary Provident Fund (VPF)<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Employers may also choose to make matching contributions. These additional voluntary contributions may later be reduced or discontinued, providing more flexibility to employees and employers.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>What Remains Unchanged in EPF<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">For most subscribers, the core features remain the same:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Employee contribution remains 12% of wages<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Employer contribution remains equal<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Certain notified establishments may continue with 10% contribution<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Interest rate framework remains unchanged<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Tax treatment remains unchanged<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Nomination rules remain unchanged<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Transfer of PF balance remains unchanged<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">So, the new scheme does not alter the basic retirement savings structure for salaried employees.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Employees\u2019 Pension Scheme, 2026<\/strong><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">The new EPS 2026 has also been notified under the Social Security Code.<\/span><\/li>\n<li aria-level=\"1\"><b>What Stays the Same<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">The pension calculation formula remains unchanged:<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Monthly pension = Pensionable Salary \u00d7 Pensionable Service \/ 70<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Pensionable salary will continue to be based on the average monthly salary of the last 60 months<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Employer contribution to EPS remains 8.33% of wages, subject to the wage ceiling<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Government contribution remains 1.16% of wages, subject to the wage ceiling<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The minimum pension remains Rs 1,000 per month, subject to existing conditions.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Eligibility rules also remain unchanged:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">At least 10 years of eligible service is required for a pension<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Early pension can be taken from the age 50<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Pension is reduced by 4% for every year before the normal retirement age<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Members with less than 10 years of service can either withdraw benefits or obtain a scheme certificate<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Faster Pension Claim Settlement<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">A notable operational reform is the introduction of a timeline for pension claim settlement. EPFO must now either:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Settle a complete pension claim within 20 days, or<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Inform the applicant about deficiencies within the same period<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">If a complete claim is delayed without a valid reason, 12% annual interest will be payable on the benefit amount, and it will be recovered from the salary of the responsible EPFO official.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Higher Pension Provision Incorporated<\/b><\/li>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">For employees who opted for a higher pension following the Supreme Court ruling, the additional contribution provisions have now been formally incorporated into the scheme.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Overall Significance<\/strong><\/h2>\n<ul>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The EPF Scheme 2026 and EPS 2026 are best understood as part of a broader administrative modernisation exercise under the Code on Social Security, 2020. The key changes are:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Shift to the new labour code framework<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Greater digital compliance<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Clearer rules for contract labour and exempted trusts<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">More structured withdrawal categories<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Faster pension settlement timelines<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Better compliance and accountability<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">At the same time, the basic savings and pension architecture remains largely intact, which means there is no immediate disruption for subscribers.<\/span><\/li>\n<\/ul>\n<p><strong>Source: <a href=\"https:\/\/indianexpress.com\/article\/explained\/explained-economics\/new-epf-scheme-2026-what-changes-provident-fund-10768486\/\" target=\"_blank\" rel=\"nofollow noopener\">IE<\/a> | <a href=\"https:\/\/www.business-standard.com\/finance\/personal-finance\/epf-scheme-2026-notified-what-changes-for-your-pf-account-pension-126070200508_1.html\" target=\"_blank\" rel=\"nofollow noopener\">BS<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New EPF Scheme 2026 brings digital compliance, simplified withdrawal rules, faster pension claims, and updated EPS provisions under the Social Security Code.<\/p>\n","protected":false},"author":21,"featured_media":111096,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[60,8465,22,59],"class_list":{"0":"post-111068","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-mains-articles","9":"tag-new-epf-scheme","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affairs-tag","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/111068","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=111068"}],"version-history":[{"count":3,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/111068\/revisions"}],"predecessor-version":[{"id":111084,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/111068\/revisions\/111084"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/111096"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=111068"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=111068"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=111068"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}