EPF Scheme 2026 notified: What changes for your PF account, pension
New EPF framework explained: What changes for subscribers and what stays the same in your retirement savings plan
 "EPF Scheme 2026 notified: What changes for your PF account, pension")
The government has replaced the decades-old Employees’ Provident Funds Scheme, 1952, with the Employees’ Provident Funds Scheme, 2026, bringing provident fund operations under the Code on Social Security, 2020. However, for millions of salaried employees, the question is whether their EPF contribution, interest rate, withdrawal rules or retirement benefits have changed.
The answer: Most core EPF benefits remain the same. The new framework mainly changes the legal structure, strengthens digital compliance and introduces stricter rules for exempted provident fund trusts.
EPF now operates under Social Security Code
Earlier, the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 governed the EPF system. With the notification of the EPF Scheme, 2026, the provident fund framework has moved under the Code on Social Security, 2020.
For existing subscribers, this transition does not mean a change in their accumulated savings. EPF account balances, Universal Account Numbers, past contributions and existing benefits will continue without interruption.
It is largely a legal and administrative change aimed at bringing social security schemes under the new labour code framework.
EPF contribution, interest rate and withdrawal rules remain unchanged
The notification does not change the basic contribution structure for employees.
Under the new scheme:
- Employees will continue contributing 12 per cent of their basic wages and dearness allowance towards EPF.
- Employers will continue making an equal contribution.
- The reduced 10 per cent contribution provision for certain notified establishments will also continue.
- Employees can continue making additional voluntary contributions through the Voluntary Provident Fund (VPF).
The EPF interest rate framework also remains unchanged. The government has not announced any revision in the existing EPF interest rate through this notification.
Withdrawal rules, nomination provisions, transfer of PF balance and tax treatment of EPF savings also continue under the existing framework.
More digital processes for EPFO services
One of the key changes under the EPF Scheme, 2026 is the formal recognition of digital systems that EPFO has gradually introduced.
The new framework gives greater importance to:
- Online filing of employer returns
- Electronic maintenance of records
- Digital member accounts
- Online claim processing
- Electronic annual statements
- Digital inspections
For subscribers, this means greater reliance on online processes for account management, claims and communication.
Stricter compliance rules for exempted PF trusts
Some companies manage their own provident fund trusts instead of depositing employee contributions directly with EPFO. These are known as exempted establishments.
The new scheme introduces a more detailed governance structure for such trusts.
The rules cover:
- Trustee eligibility and responsibilities
- Regular trustee meetings
- Digital accounting systems
- Annual audits
- Investment reporting
- Online disclosures
- Compliance timelines
- Penalties for delayed reporting
The objective is to improve transparency and accountability in employer-managed PF trusts.
Government can temporarily modify contributions during emergencies
The new EPF framework also gives the central government the power to temporarily reduce or defer contributions during extraordinary situations such as pandemics, epidemics or national disasters.
This provision can be used for up to three months. It does not permanently alter the EPF contribution structure.
EPS 2026 replaces earlier pension schemes
Along with EPF changes, the government has notified the Employees’ Pension Scheme, 2026, replacing the earlier Employees’ Pension Scheme, 1995 and the Employees’ Family Pension Scheme, 1971.
The pension system has also moved under the Social Security Code framework.
However, pensioners and existing beneficiaries will continue receiving their approved pension benefits.
Pension calculation formula remains the same
For employees covered under EPS, the pension calculation method has not changed.
The monthly pension will continue to be calculated using the formula:
- Monthly pension = Pensionable salary × Pensionable service ÷ 70
- The pensionable salary will continue to be based on the average monthly salary drawn during the last 60 months before retirement or exit.
EPS contribution rules unchanged
The contribution structure under the pension scheme remains the same.
Employer contribution towards EPS will continue at 8.33 per cent of wages, subject to the applicable wage ceiling.
Government contribution will continue at 1.16 per cent of wages, subject to the wage ceiling.
For employees who opted for higher pension following the Supreme Court’s ruling, the additional pension contribution provisions have now been formally incorporated into the scheme.
Faster pension claim settlement and penalty for delays
A major operational change under EPS 2026 is the introduction of a timeline for pension claim processing.
EPFO will have to either:
- Settle a complete pension claim within 20 days, or
- Inform the applicant about deficiencies within the same period.
If a complete claim is delayed without a valid reason, interest at 12 per cent per annum will be payable on the benefit amount. The amount will be recovered from the salary of the responsible EPFO official.
Minimum pension and eligibility rules remain unchanged
The minimum EPS pension remains Rs 1,000 per month, subject to existing conditions.
Eligibility rules also continue:
- Members need at least 10 years of eligible service for pension benefits.
- Early pension can be taken from the age of 50 after completing 10 years of service.
- Pension amount is reduced by 4 per cent for every year before the normal retirement age.
For employees with less than 10 years of service, the options remain the same — they can either withdraw benefits or obtain a scheme certificate to carry forward service if they join another EPF-covered employer.
Overall, the EPF and EPS 2026 changes are more about modernising administration, improving compliance and bringing retirement schemes under the new social security framework. For employees, the key savings and pension rules that directly affect retirement planning largely remain unchanged.