EPF Scheme 2026

The Ministry of Labour and Employment has introduced the Employees' Provident Fund Scheme 2026, bringing India's provident fund administration under the Code on Social Security, 2020. Although employee accounts and UANs remain unchanged, HR and payroll teams must understand the new compliance requirements, reporting rules and operational changes.

The updated scheme introduces improvements in filing, withdrawals, contractor liability, pension processing, Voluntary Provident Fund (VPF) flexibility and compliance management while simplifying several existing provisions.

Key Highlights

EPF is now governed under the Code on Social Security, 2020.
New electronic Form V filing within 15 days.
Contractor PF responsibility is clearly defined.
Employees can modify VPF contributions anytime.
Withdrawal rules have been simplified into three categories.
Exempted PF trusts require stronger governance.
EPS 2026 introduces faster pension settlement timelines.
New transition schemes support compliance regularization.

EPF Now Falls Under the Code on Social Security

The biggest legal change is that EPF administration now comes under the Code on Social Security, 2020 instead of the Employees' Provident Fund Scheme, 1952.

For employees, this transition is seamless. Existing UANs, account balances, employment history and service records continue without any migration or re-registration.

For HR departments, the primary responsibility is updating internal documentation, employee policies, appointment letters and compliance references that still mention the old legislation.

Important:

Existing employees do not need to create new PF accounts.
The transition happens automatically without affecting
their contributions or accumulated balance.

Why HR Teams Should Care

While many payroll calculations remain unchanged, the new scheme introduces several compliance improvements that directly affect HR operations.

Organizations should review payroll workflows, employee master data, contractor records, withdrawal communication and compliance documentation to ensure alignment with the latest regulations.

Major Benefits of EPF Scheme 2026

Better payroll compliance
Simplified withdrawal process
Greater flexibility for VPF contributions
Improved digital filing and reporting
Enhanced governance for PF trusts
Faster pension claim settlement
Improved transparency for employers and employees

Form V: New 15-Day Filing Requirement

One of the most important operational changes under EPF Scheme 2026 is the introduction of an electronic Form V. Every establishment must submit this consolidated return within 15 days of the scheme becoming applicable.

The return includes employee identification details and payroll information to establish a standardized EPF database for future filings.

Form V includes:

Universal Account Number (UAN)
Aadhaar Number
PAN
Aadhaar-linked Bank Account
Gross Salary
EPF Wages

After the initial submission, employers must continue filing monthly returns within the same 15-day reporting window. HR teams should verify employee master data before the first filing to avoid compliance issues.

Contractor PF Liability

The 2026 Scheme clearly defines responsibility for provident fund contributions involving contract workers.

Unregistered Contractors

If a contractor is not registered with EPFO, the principal employer becomes directly responsible for calculating, deducting and depositing Provident Fund contributions for contract employees.

Registered Contractors

Registered contractors continue handling PF contributions. However, if they fail to deposit contributions, EPFO can recover the dues from the principal employer, who may later recover the amount from the contractor.

HR Action:

Review the registration status of all staffing agencies, outsourcing
partners and contract vendors to reduce compliance risk.

Emergency Contribution Relief

The Central Government now has the authority to temporarily defer or reduce employer and employee PF contributions for up to three months during situations such as pandemics, epidemics or national disasters.

This provision provides flexibility during national emergencies without changing the standard PF contribution structure under normal conditions.

Voluntary Provident Fund (VPF) Gets More Flexible

Employees are no longer required to keep the same Voluntary Provident Fund contribution throughout the financial year.

Under EPF Scheme 2026 employees can:

Start VPF anytime
Increase contributions
Reduce contributions
Stop VPF whenever required

Employers are still not required to match voluntary contributions. This change simply provides employees with greater flexibility in retirement planning.

Existing Rules That Continue

Several important provisions remain unchanged under the new scheme.

Standard employer and employee PF contribution remains 12%.
Employees earning above the statutory wage ceiling must still jointly opt in for EPF coverage.
Certain notified establishments continue with the reduced 10% contribution rate.
Existing UANs, PF balances and service history remain unchanged.

Exempted PF Trust Governance

Organizations operating exempted Provident Fund trusts must comply with stricter governance and reporting standards.

The updated scheme introduces requirements such as:

Dematerialized investments
Annual independent audits
Online disclosures
Regular compliance reporting
Renewal of exemption approvals

These measures improve transparency and strengthen governance for private PF trusts.

Simplified PF Withdrawal Rules

The withdrawal process has been simplified by reducing multiple withdrawal categories into three easy-to-understand groups.

New Withdrawal Categories

Essential Needs – Illness, education and marriage
Housing Needs – Home purchase, construction and loan repayment
Special Circumstances – Natural disasters, prolonged unemployment and emergencies

Employees must maintain a minimum balance of 25% in their Provident Fund account while remaining in active service. This helps protect long-term retirement savings while still allowing access during genuine needs.

EPS 2026: Faster Pension Processing

The Employees' Pension Scheme (EPS) 2026 replaces the earlier EPS-95 while keeping the existing pension formula and minimum pension amount unchanged.

The major improvement is faster claim processing. Pension applications must now be settled within 20 days. If a valid claim is delayed without justification, interest may be payable on the delayed amount, improving accountability and service quality.

Key Pension Updates

Pension formula remains unchanged.
Minimum pension continues at ₹1,000 per month.
Existing pensioners continue without interruption.
20-day pension claim settlement timeline.

EPF Scheme 2026: Old vs New

Feature	Previous Scheme	EPF Scheme 2026
Governing Law	EPF Act, 1952	Code on Social Security, 2020
Withdrawal Categories	Multiple Categories	3 Simplified Categories
VPF Changes	Locked for Financial Year	Can Change Anytime
Form Filing	Existing Monthly Returns	Electronic Form V within 15 Days
Contractor Liability	Less Clearly Defined	Clearly Defined Responsibilities
Pension Claims	No Fixed Timeline	20-Day Settlement Target

HR Compliance Checklist

HR and Payroll teams should complete the following activities to ensure smooth implementation of the new EPF Scheme.

Verify employee UAN, Aadhaar and PAN details.
Confirm Aadhaar-linked bank account information.
Prepare Form V before the reporting deadline.
Review contractor registration and compliance.
Update HR policies and appointment letters.
Educate employees about VPF flexibility.
Review PF withdrawal communication.
Monitor future EPFO notifications and amendments.

Frequently Asked Questions

Does every employee need a new PF account?

No. Existing UANs, PF balances and service history continue automatically.

Has the PF contribution percentage changed?

No. The standard employer and employee contribution remains unchanged.

Can employees change VPF contributions anytime?

Yes. Employees can now start, increase, reduce or stop VPF contributions at any time during the year.

What is Form V?

Form V is a new electronic return that employers must submit within 15 days to register employee details under the new scheme.

Have withdrawal rules changed?

Yes. Withdrawal provisions have been simplified into three broad categories while maintaining a minimum balance requirement during active employment.

Conclusion

The EPF Scheme 2026 modernizes provident fund administration by strengthening compliance, simplifying withdrawals, improving digital reporting and providing greater flexibility for employees.

Although existing employee accounts remain unaffected, HR and Payroll teams should update their documentation, verify employee records, review contractor compliance and ensure timely Form V submissions to remain fully compliant with the latest regulations.

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EPF Scheme 2026: Key Payroll & Compliance Changes HR Teams Must Know

EPF Scheme 2026

Key Highlights

EPF Now Falls Under the Code on Social Security

Why HR Teams Should Care

Major Benefits of EPF Scheme 2026

Form V: New 15-Day Filing Requirement

Contractor PF Liability

Unregistered Contractors

Registered Contractors

Emergency Contribution Relief

Voluntary Provident Fund (VPF) Gets More Flexible

Existing Rules That Continue

Exempted PF Trust Governance

Simplified PF Withdrawal Rules

EPS 2026: Faster Pension Processing

EPF Scheme 2026: Old vs New

HR Compliance Checklist

Frequently Asked Questions

Does every employee need a new PF account?

Has the PF contribution percentage changed?

Can employees change VPF contributions anytime?

What is Form V?

Have withdrawal rules changed?

Conclusion

Simplify Payroll & Stay EPF Compliant