Employees’ Provident Funds Scheme, 2026

The Government of India, the Ministry of Labour and Employment, has issued notification no. G.S.R. 525(E), on 29^th June 2026, announcing the Employees’ Provident Funds Scheme, 2026. This scheme is set to take effect from the notification date, which is 29^th June 2026. It has been established under the Code on Social Security, 2020, and will supersede the Employees’ Provident Funds Scheme, 1952.

Key features of the Scheme are as follows:
• Existing members of the EPF Scheme, 1952, will transition as members under the new Scheme.

• The employer and employee statutory contributions will remain at 12% of wages, with a reduced rate of 10% applicable to specific categories of establishments as may be notified by the Central Government.

• Contributions are payable on wages up to the prescribed wage ceiling (Rs 15,000/- per month). Employers and employees may continue to contribute on higher wages in accordance with the provisions of the Scheme.

• Employers are required to remit the prescribed contributions and administrative charges within 15 days from the close of every month.

• A full final settlement of the EPF account due to job loss is now restricted and can only be claimed after 12 consecutive months of continuous unemployment.

• Imposes a strict 20-day legal deadline for the EPFO to settle claims. If an official delays a valid claim beyond 20 days without a justified reason, a 12% annual penal interest penalty is recovered directly from the responsible official.

• The principal employer shall ensure registration of the establishment and declare all contractors engaged on the portal specified for the purpose in the FORM X.

• Every contractor shall, within ten days of the close of each month, inform the principal employer, electronically in FORM-XI, the name, Universal Account Number, wages and contributions payable in respect of the contractual employee.

• The principal employer shall furnish to the Commissioner, within twenty days of the close of the month, a monthly abstract in FORM XII showing the aggregate number of recoveries made from the wages of the contractual employee and the aggregate amount contributed by the employer in respect of such members.

Additionally, special provisions of Employees’ Enrolment Campaign, 2026, Vishwas, 2026, and Amnesty, 2026, have also been notified under the EPF Scheme, 2026.

Employers must first act on the transitional schemes. This means enrolling uncovered employees under the Enrolment Campaign, settling legacy damages through VISHWAS, and regularising PF Trusts via Amnesty. Each scheme has strict timelines (4–12 months), so employers should immediately identify gaps, prepare disclosures, and ensure Aadhaar based on-boarding. These transitional windows are designed to close past compliance lapses, and missing them could expose establishments to penalties or loss of exemption benefits.

Next, employers must update payroll and governance systems to align with the broader wage definition and contribution rules. Contributions remain at 12% (10% for notified classes), but now cover at least 50% of remuneration. Employers may need to reassess contribution calculations and payroll structures.

Exempted Trusts must adopt quarterly governance meetings, demat custody of securities, auditor rotation, and stricter late filing penalties. Digital-first compliance is mandatory. UAN-linked uploads, consolidated returns, contractor cross-checks, and e-passbook facilities must replace paper processes. Employers must also ensure digital nominations and family Aadhaar seeding across all records.

Employers must treat 2026 as a reset year by closing legacy gaps, digitising compliance, and embedding governance controls to avoid future exposure.