New EPF scheme 2026: The EPF Scheme 2026, which came into effect on July 1, replaces the 70-year-old EPF Scheme 1952. EPF has now become part of the Social Security Code, 2020.

What has changed in the new EPF scheme 2026?

EPF New Scheme: The government implemented the new Employees Provident Fund (EPF) Scheme 2026 nationwide this week. The central government announced this as part of implementing the Social Security Code 2020, which replaced the old EPF Scheme 1952. Its purpose is to simplify PF rules and provide digital access to its 80 million subscribers to increase transparency, reduce paperwork, and streamline the process. Overall, its goal is to improve financial flexibility for users so they can better utilize their funds before or after leaving their jobs.

What changed for users?

• According to the new rules, PF contributions of 12%, or a maximum of ₹1,800 per month, will continue for basic salaries up to ₹15,000. However, if your salary is higher, additional PF deductions will be at your discretion. For example, if your salary is ₹1 lakh per month, the company cannot deduct more than ₹1,800 per month without your permission.
• The government has also simplified the rules for partial withdrawals in the new scheme. The 13 categories for partial PF withdrawals have now been reduced to three: 1. Essential needs (children's education, marriage, and illness), 2. Housing needs, and 3. Special circumstances.
• Under the new rules, if an employee leaves the job, the minimum membership period requirement for withdrawing the full PF amount will no longer apply. Furthermore, if the EPFO ​​delays settlement without any valid reason, the member will also be paid interest at the rate of 12%.
• Under the new scheme, members will be required to provide their Aadhaar, PAN, and Aadhaar-linked bank account details to enable digital processing of claims and other services. This aims to simplify online claims for partial withdrawals and other services.
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• Under the new rules, a minimum balance of 25% is required to be maintained in the EPF account for partial withdrawals. This means that you can withdraw up to 50-75% of your total deposit.

Is it the same as before?

• There is no change in the mandatory EPF contribution. The mandatory PF contribution for both the employee and the employer will remain at 12% of the basic salary, while the existing rate of 10% will continue for certain notified organizations.  
• Under the new scheme, existing EPF subscribers will continue to be members without interruption. This means they will automatically become members under the EPF Scheme, 2026, without the need to open a new account.
• Due to the new scheme, there will be no change in the benefits available under the 'Employees Deposit Linked Insurance' (EDLI) scheme. In case of death of the account holder, the nominee and legal heirs are sure to get an insurance payment of a minimum Rs 50,000 and a maximum Rs 7 lakh.
• Existing members of the Employees' Pension Scheme 1995 (EPS 95) will automatically become members of EPS 2026. They will also continue to receive their previously approved pension without interruption.