New EPF Scheme notified: Most core provisions retained, Pg16

Key Highlights:

• The Centre has notified the Employees’ Provident Fund Scheme, 2026, replacing the Employees’ Provident Fund Scheme, 1952.
• The new scheme aligns the provident fund framework with the Code on Social Security, 2020.
• Most core provisions, including the 12% contribution rate and eligibility norms, have been retained.
• The Employees’ Provident Fund Scheme, 2026 came into effect on June 29, 2026.
• It focuses on simplifying procedures, strengthening governance, and expanding digital compliance.

Detailed Insights:

• The scheme aims to ease the transition to the new labour codes and modernize the provident fund framework.
• The mandatory EPF contribution rate remains 12% of wages for both employee and employer, with a 10% rate for specific establishments.
• Partial withdrawal rules have been simplified, allowing members to access funds for essential needs like illness, education, marriage, and housing.
• Existing EPF subscribers will automatically become members under the new scheme, ensuring continuity without affecting their accumulated corpus.
• The new framework introduces enhanced governance and compliance obligations for employers, including detailed filing requirements.
• It emphasizes greater digitalization, including electronic returns and online claims, to improve accessibility and transparency.

Key Concepts Involved:

• Employees’ Provident Fund Scheme, 2026: The new statutory framework governing provident funds in India, superseding the 1952 scheme.
• Employees’ Provident Fund Scheme, 1952: The previous legal framework for provident funds, now replaced by the 2026 scheme.
• Code on Social Security, 2020: A comprehensive labour code that consolidates and amends nine central labour laws related to social security.
• Employees' Provident Fund Organisation (EPFO): A statutory body under the Ministry of Labour and Employment, responsible for administering provident fund, pension, and insurance schemes.