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

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Indiaemploymentnews
Fri Jul 03 13:53:45 IST 2026
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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?

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  • 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.
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