Nationwide overhaul of 74-year-old PF rules: What’s new for you in the EPF Scheme 2026

New EPF Scheme 2026: The EPF Scheme 2026, effective from July 1, has replaced the 70-year-old EPF Scheme of 1952. EPF has now become part of the Social Security Code, 2020.

EPF New Scheme: The government has implemented the new Employees' Provident Fund (EPF) Scheme 2026 nationwide this week. The Central Government announced this as part of the implementation of the 'Social Security Code 2020,' replacing the old EPF Scheme of 1952. The objective is to simplify PF rules and provide digital facilities to its eight crore subscribers, thereby enhancing transparency, reducing paperwork, and streamlining operational processes. Overall, the aim is to improve financial flexibility for users, enabling them to utilize their funds more effectively—whether before or after leaving a job.

What has changed for users?

• Under the new rules, the PF contribution of 12%—capped at a maximum of ₹1,800 per month—will continue on a basic salary of up to ₹15,000. However, if your salary exceeds this amount, opting for an additional PF deduction will be at your discretion. For instance, if your monthly salary is ₹1 lakh, the company cannot deduct more than ₹1,800 towards PF without your consent.
• The government has also simplified the rules for partial withdrawals under the new scheme. The previous 13 categories for partial PF withdrawal have been consolidated into three categories:

1- Essential needs (children's education, marriage, and medical treatment),

2- Housing needs, and

3- Special circumstances.

• Under the new regulations, if an employee leaves their job, the conditions regarding a minimum membership period for withdrawing the entire PF amount will no longer apply. Additionally, if the EPFO ​​delays the settlement without a valid reason, the member will be paid interest at a rate of 12%.
• Under the new scheme, members must provide details of their Aadhaar, PAN, and Aadhaar-linked bank accounts to facilitate the digital processing of claims and other services. The objective is to simplify online claims for partial withdrawals and other services.
• Within 15 days of the new scheme's implementation, companies or employers must update employee details—such as Aadhaar, PAN, UAN, and gross wages—in Form-5.
• Under the new rules, it is mandatory to maintain a minimum balance of 25% in the EPF account for partial withdrawals; this means members can withdraw between 50% and 75% of their total accumulated corpus.

Has anything changed?

• There have been no changes to mandatory EPF contributions. The mandatory PF contribution from both the employee and the employer will remain at 12% of the basic salary, while the existing rate of 10% will continue to apply to certain notified establishments.
• Existing EPF subscribers will continue their membership seamlessly under the new scheme; they will automatically become members under the EPF Scheme, 2026, without needing to open a new account.
• The new scheme will not alter the benefits provided under the 'Employees' Deposit Linked Insurance' (EDLI) scheme. In the event of the account holder's death, the nominee or legal heirs are guaranteed an insurance payout ranging from a minimum of ₹50,000 to a maximum of ₹7 lakh.
• Existing members of the Employees' Pension Scheme 1995 (EPS 95) will automatically become members of EPS 2026, and their previously sanctioned pensions will continue without interruption.