EPF Scheme 2026 notified under Social Security Code: New withdrawal rules and other changes you should know

The Centre has notified the Employees' Provident Fund (EPF) Scheme, 2026, replacing the decades-old EPF Scheme, 1952, as part of the implementation of Code on Social Security, 2020. The new scheme came into effect on June 29, 2026, the date of its publication in the Gazette.

While the new EPF scheme retains the core provident fund framework, including contribution rates and membership provisions, it introduces a major revamp aimed at enhancing digital compliance, simplifying processes and supporting the roll out of the labour codes.

It also brings several changes to withdrawal rules, administration, and compliance requirements for employers and EPF members. Here are the key changes that employees need to know under the EPF Scheme, 2026.

Contributions of employers and employees remain unchanged

The mandatory EPF contribution remains unchanged at 12% of wages each from the employee and employer, while the existing 10% rate will continue to apply to notified establishments.

The scheme also retains the statutory wage ceiling, meaning mandatory EPF contributions for employees earning above the notified wage limit will be calculated only up to that ceiling.

However, employees may voluntarily contribute on wages above the ceiling or contribute at a rate higher than 12%, with employers having the option to make matching contributions. Such voluntary contributions may also be reduced or discontinued later by both parties.

What changes in withdrawal rules

The EPF Scheme, 2026 simplifies the rules for partial withdrawals, making it easier for members to access their savings for specified needs.

Under the new scheme, EPF members will now be able to withdraw funds for illness, education, marriage, housing-related expenses, and other specified circumstances, subject to prescribed conditions and the requirement to maintain a minimum balance.

Existing members move automatically

The new scheme ensures a smooth transition for existing EPF subscribers, who will automatically become members under the EPF Scheme, 2026.

There will be no impact on their accumulated corpus, and eligible new employees will continue to be brought under EPF coverage.

Mandatory rules for digital processing of EPF

The EPF Scheme, 2026 requires members to provide their Aadhaar, PAN and Aadhaar-linked bank account details to enable digital processing of claims and other services.

At the same time, the Universal Account Number (UAN) will continue to serve as the permanent identifier for every EPF member, ensuring seamless portability of accounts when employees change jobs.

For salaried employees, the new notification is less about changing their EPF benefits and more about modernising how the system works. The new scheme has a stronger focus on digital compliance, tighter oversight of exempt PF trusts and seamless continuity under the Code on Social Security. The EPF Scheme, 2026 also aims to reduce paperwork, improve transparency and make provident fund management more efficient, while leaving the core retirement benefit structure unchanged.

(With inputs from ANI)