EPFO: Is your PF deposited in your company's PF trust? EPFO changed these rules, including the interest rate..
EPFO New Rule 2026: Exempted PF Trusts – The Employees' Provident Fund Organisation (EPFO) has issued new rules affecting millions of salaried employees across the country. Typically, employees' PF contributions are deposited directly with the EPFO; however, some large companies operate their own in-house PF trusts.
According to a report by our partner website News18, the recently notified Employees’ Provident Fund Scheme, 2026, has significantly tightened regulations for these private PF trusts regarding audits, digital record-keeping, interest payments, online claims, and fund management.
What is an Exempted PF Trust?
Some large companies obtain special government permission to manage their employees' provident funds through their own in-house trusts instead of depositing the money with the EPFO. These are known as 'Exempted PF Trusts.' These trusts collect monthly contributions from both the employees and the company and offer an interest rate determined by the government. When an employee leaves such a company, they must transfer their funds to a standard EPF account.
7 Key Changes Under the New EPF Scheme 2026
1- Mandatory provision of benefits equal to or better than EPFO
Compliance norms for these private trusts have been made much stricter under the new rules. A crucial condition for obtaining the exemption is that these trusts must provide benefits to their beneficiaries that are equal to or better than those available under the EPF scheme.
2- Mandatory constitution of a Board of Trustees
It will be mandatory for an exempted company to constitute a 'Board of Trustees.' This board will be fully accountable for managing the members' funds and maintaining the security of their records.
3- Cap on interest rates
A significant change has been introduced regarding the interest rates offered by PF trusts under the new rules. According to the notification, these trusts cannot offer their members an interest rate exceeding the official rate declared by the Central Government by more than 200 basis points (2 percentage points). In other words, an upper limit has been set on the interest rate.
4- Mandatory digital records and online claims
It has now been made mandatory for all PF trusts to maintain electronic accounts, issue annual statements, provide employees with the facility to check balances online, and file electronic returns. Additionally, employees will be able to submit claims electronically for PF withdrawals, transfers, and advances, following the procedures prescribed by the EPFO.
5- Mandatory annual audit
These PF trusts must ensure that all their accounts undergo a mandatory annual audit conducted by a Chartered Accountant.
6- Employer bears full responsibility
Managing the trust's administrative expenses, compensating for any losses incurred by the trust, transferring PF contributions on time, and ensuring full compliance with all regulations will be the sole responsibility of the employer (company).
7- Exemption not permanent
Under the new rules, the exemption granted to companies will no longer be indefinite or open-ended. Initially, the exemption will be valid for only three years. It will be renewed only if companies continue to meet all the stipulated conditions. Persistent violation or non-compliance with the rules could lead to the cancellation of this exemption.
Disclaimer: This content has been sourced and edited from Money Control. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
