New EPF, EPS, and EDLI Schemes 2026 Under the Code on Social Security, 2020

Overview of the 2026 Social Security Schemes

The EPF, EPS, and EDLI Schemes 2026 replace the earlier provident fund, pension, and deposit-linked insurance schemes under the Code on Social Security, 2020. The key changes concern the definitions of wages, contributions, withdrawals, pension benefits, member identification, digital compliance, exempted PF trusts, and claim administration. Employers should review payroll calculations, member records, nominations, PF reconciliations, pension cases, and trust-governance procedures.

On 29 June 2026, the Ministry of Labour and Employment notified three new schemes under the Code on Social Security, 2020:

• The Employees’ Provident Fund Scheme, 2026
• The Employees’ Pension Scheme, 2026
• The Employees’ Deposit-Linked Insurance Scheme, 2026

These schemes supersede the earlier 1952, 1995, and 1976 schemes, subject to the effective dates specified in the respective notifications. Alongside these schemes, the Employees’ Enrolment Campaign (EEC) 2026, VISHWAS 2026 and AMNESTY 2026 were also notified as special provisions.

The reforms are principally related to the legal framework, the contribution base (“wages” under the Code), withdrawal rules, member KYC, digital compliance, and the governance of exempted trusts. Existing members, accumulated balances, and service continue seamlessly, and existing pensioners are unaffected.

Key provisions of the new schemes

A. EPF Scheme 2026

1. Membership

• Membership is mandatory for employees whose wages do not exceed the notified wage ceiling of INR 15,000.
• Employees whose wages exceed the notified wage ceiling are classified as ‘excluded employees’. However, such employees and their employer have an option to contribute on wages above the ceiling limit.
• Employees who were members under the EPF Scheme, 1952 shall continue to be members under the new EPF scheme. Excluded/ exempt employees become members once their exemption ends.

2. Wages and Contributions

• The contributions will be calculated on “wages” as defined under the Code on Social Security, replacing “basic wages” under the repealed 1952 Act.
• Contributions will be 12% of the actual wages drawn or payable during the month.
• Employees may make additional voluntary contributions beyond the statutory ceiling, and employers are not legally obligated to match them.
• The scheme allows the employer and employee to reduce or discontinue such voluntary contributions at any time.
• The employer shall be liable to pay administrative charges on mandatory and voluntary contributions.

3. Compliances

• Establishments running self-managed private PF trusts (exempted establishments) must appoint a Board of Trustees chaired by the employer, hold quarterly meetings, and submit all minutes and returns electronically. Tighter governance will apply, including trustee eligibility, mandatory meetings, electronic accounting, annual audits, dematerialized investments, online disclosures, reporting timelines, and exemption renewal, with penalties for delayed reporting.
• The scheme places heavy reliance on digital tracking, leveraging the Universal Account Number (UAN) along with mandatory Aadhaar authentication. Aadhaar, PAN, and a seeded bank account are mandatory for PF transactions. These details should be captured and validated during onboarding and cleansed for existing members.
• Any PF nomination made *before* marriage is legally considered ‘invalid’. A fresh nomination must be filed on the designated portal upon marriage.
• A late fee of INR 500 per day is payable for any delay in filing a return under the scheme.

4. Withdrawal

• Employees are allowed to make partial withdrawals for specified purposes (marriage, education, housing, illness, etc.) after completing 12 months of membership, subject to maintaining a minimum balance of 25% of aggregate contributions.
• Complete withdrawal for members other than International Workers (IWs) is allowed under the below-mentioned circumstances:
  • Retirement after the age of 55 years
  • Retirement on account of permanent or total incapacity to work
  • Migration from India for permanent settlement abroad
  • Other contingencies
• In any other circumstances, a member shall not be eligible to withdraw for a period of 12 months from the date they cease employment.

B. EPS Scheme 2026

1. Contribution

• Employers are required to contribute 8.33% of wages, up to the notified wage ceiling, towards the Pension Fund within 15 days from the close of each month.
• For eligible employees who have opted for higher pension contributions, the employer contribution is 9.49% of wages, subject to the applicable conditions.

2. Withdrawal benefit

• For members who exit before becoming eligible for a monthly pension, a withdrawal benefit is available only after 36 months from the date the last contribution became due or upon attaining superannuation, whichever is earlier.

3. Pension

• Pensionable wages will be determined based on the average monthly wages drawn during the 60 months of service preceding the date of exiting the Pension Fund membership.
• Members who have reached the superannuation age of 58 can choose to defer drawing their pension up to the age of 60 years.
• For each full year the pension is deferred, the pension amount will increase by 4%. Members can also choose to continue contributing during this deferred period to increase their pensionable service and wages further.
• The minimum monthly pension for any member or surviving widow/widower (including reliefs) cannot be less than INR 1,000 per month.
• The minimum monthly pension is set at INR 250 per child (payable up to 25 years of age for up to two children simultaneously) and INR 750 per orphan. For permanently disabled children, the pension continues for life regardless of age or the number of children in the family.

4. Claim settlement

• Complete claims must be settled and benefits disbursed within 20 days of the Commissioner's receipt.
• If the Commissioner fails to settle a complete claim within 20 days without a valid reason, penal interest of 12% per annum will be levied on the benefit amount for the duration of the delay and will be deducted directly from the Commissioner’s salary.

C. EDLI Scheme 2026

1. Wages and contributions

• Employer contributions will be calculated on wages as defined under the Code on Social Security.
• The Central Government shall notify the rate of contribution from time to time.

2. Assurance benefits

• The scheme includes a base assurance benefit and an enhanced assurance benefit for employees who have 12 months of continuous employment before death. The beneficiary will receive a higher amount where the enhanced benefit rule applies.
• A minimum assured benefit of INR 50,000 is available to the dependents of the deceased member. The base benefit is capped at a maximum of INR 100,000.
• For a deceased member who was in employment for a continuous period of 12 months preceding the month of death, a minimum assurance benefit of INR 250,000 and a maximum benefit of INR 700,000 are available.

What employers should do now

Employers should review payroll wage components against the definition of “wages” under the Code, validate UAN and KYC records, review pension contribution arrangements, reconcile payroll data with EPFO records, confirm nomination data, and assess the governance requirements applicable to exempted PF trusts.

Employers should also identify whether EEC 2026, VISHWAS 2026, or AMNESTY 2026 may apply to their historical compliance position and review the relevant eligibility conditions and deadlines.