EPF Scheme, 2026

The new EPF Scheme
is in force. Is your
payroll ready?

The Employees' Provident Fund Scheme, 2026 replaced the 1952 Scheme on 29 June 2026, and the PF wage ceiling moved to ₹25,000 on 17 September 2026. Here is what changed, and what employers should do now.

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29 Jun 2026Scheme in force
₹25,000PF wage ceiling
12 monthsTo first partial withdrawal
15 daysFiling cycle from month close
!

Where PF was capped at ₹15,000, the new ceiling means up to ₹1,200 more employer PF per employee a month, and the same reduction in employee take-home. Joiners earning ₹15,000 to ₹25,000 are no longer Excluded Employees.

Background

Why the EPF rules changed in 2026

Four Labour Codes replaced 29 laws, including the EPF Act, 1952. Under the Code on
Social Security, 2020, three new Schemes took effect on 29 June 2026.

  1. 121 Nov 2025Four Labour Codes notified
  2. 28 May 2026Central Rules on all four Codes notified
  3. 329 Jun 2026EPF, EPS and EDLI Schemes, 2026 in force
  4. 417 Sep 2026PF wage ceiling raised to
    ₹25,000

At a glance

What changed under the EPF Scheme, 2026

Earlier rules compared with the EPF Scheme, 2026
AreaEarlierNow
PF wage ceiling₹15,000 a monthNow:₹25,000 a month, from 17 September 2026
Contribution baseBasic wages, DA and retaining allowanceNow:Wages as per Codes, at least 50% of remuneration
Withdrawal provisions13 separate provisionsNow:3 categories
Partial withdrawal service5 years, 7 years or other periodsNow:12 months for all
Education and marriage3 withdrawals in aggregateNow:Education 10 times, marriage 5 times
Interest on final paymentTo settlement date only if processed by the 25thNow:Up to the date of settlement
Employee dutiesNot defined in the SchemeNow:KYC, nomination, past employment: mandatory

Membership and contribution

Who is covered, what is
contributed, and what it costs you

Coverage, contribution and cost are linked: the ₹25,000 ceiling brings more
employees into PF and raises the employer share for many existing members.

1. Who is covered

Automatic

  • All existing members of the EPF Scheme, 1952, until the date that Scheme ceased
  • Every employee entitled and required to be a member, from the day the new Scheme was notified
  • International Workers who were members of the EPF Scheme, 1952 continue

By event or by choice

  • An excluded or exempt employee becomes a member on ceasing to be excluded or exempt
  • Joint written opt-in by employee and employer enrols an Excluded Employee for PF coverage and Members can contribute over and above the wage ceiling limit by joint consent. Employer pays the administrative charges.

2. How much is contributed

12% of Wages up to ₹25,000. Above that, it's a choice.

12%of Wages, statutory rate
₹25,000wage ceiling from 17 Sep 2026
₹3,000maximum statutory contribution a month

Statutory: 12%, up to ₹3,000

Voluntary: any contribution above ₹3,000

Contribution base

Wages as defined in Section 2(88) of the Code on Social Security. Wages cannot be less than 50% of total remuneration or minimum wages as applicable, whichever is higher.

Employer: choose one

ARestrict own share to ₹3,000 a month

BMatch on the higher wages

Employee: voluntary (AVC)

  • Any contribution not exceeding Wages less deductions
  • Can be reduced or stopped any time
  • Employer pays admin charges on it

3. What it adds to your PF cost

An illustrative estimate of the extra employer PF where PF was capped at ₹15,000.

Your workforce

Count only employees whose PF was capped at ₹15,000 before 17
September 2026.

Extra employer PF a year

₹72,00,000₹72 lakh a year

Earlier, per head₹1,800
Now, per head₹3,000
Extra per employee a month₹1,200
Extra across the team a month₹6,00,000

Illustrative, at the statutory 12% employer rate, excluding administrative charges. Employee take-home falls by the same amount. Wages here means Wages as defined in the Code, at least 50% of total remuneration.

Not sure what the ₹25,000 ceiling means for your payroll?

Our PF specialists will review your coverage, Wages and cost impact with you.

Schedule a Consultation

Withdrawals

13 withdrawal routes
become 3, with higher limits

13provisionsbecome3categories

Essential Personal Needs

Illness, education, marriage

10xEducation
5xMarriage
No capIllness

Housing Needs

Purchase, construction, loan repayment

5xover the entire membership period

Special Circumstances

Situations specified in the Scheme

2xin a financial year
12 monthsminimum membership for all partial withdrawals
Resetwithdrawal counts restart from 29 June 2026 (earlier: 3 in aggregate for marriage and education)
75% / 25%maximum withdrawal, with 25% of the balance kept; ₹1,000 minimum withdrawal
20 daysto settle a claim from receipt. Delay without sufficient cause attracts 12% a year penal interest, deducted from the Commissioner's salary

Final withdrawal

A member unemployed before age 55 can claim final withdrawal after 12 consecutive months unemployed. The waiting period does not apply to female members who resigned due to marriage.

Interest on final payment

Now paid up to the settlement date. Earlier, current month interest paid only for claims processed on or after 25th of the month, till that month end.

Responsibilities

Employer filings run on a 15-day
clock. Delay costs damages.

15days

from month close, or from the date of change

EnrolmentsNew members and transfers

From month close

ExitsDate of leaving

From month close

ContributionsRemit the month's contributions

From month close

IW1 returnsFile the IW1 returns

From month close

Ownership changeUpdate on the EPFO portal

From the change

Damages a month if late

0.25% 0.5% 1% Longer delay →

Rises with the length of delay. Rates have been reduced.

Employees

Duties defined for the first time
KYC
Aadhaar, PAN and bank account, mandatory
Nomination
Family details with Aadhaar, mandatory
Past employment
Submit immediately after joining

Employers: standing duties

Ownership form

File after registering the establishment for the Scheme

Public display

Ownership return extract at the entrance and on the website

UAN generation

Facilitate UAN for employees wherever required

e-passbook

Digital access and support to download it from the EPFO portal

Records and registers

In the prescribed form, electronically or otherwise

Inspections

Submit documents whenever they are sought

Want help meeting the 15-day filing cycle?

Talk to us about contributions, returns, contractor declarations and EPFO notices.

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Decoding EPF Scheme, 2026 webinar with Vishwanath B G, VP Operations, and S Mohana Sundari, AVP Operations, TeamLease RegTech Play icon

Webinar

Decoding EPF Scheme,
2026: What Every
Employer Needs to Know

Hear from Vishwanath B G and S Mohana Sundari as they cover the key changes, including the ₹25,000 PF wage ceiling, contribution rules, withdrawals, contractor compliance and employer responsibilities, and the key actions employers need to take.

Play iconWatch the Replay

How TeamLease RegTech can help

One partner for your move
to the EPF Scheme, 2026

From assessing the impact to running PF compliance month after month, our
specialists work alongside your HR, payroll and finance teams.

Bar chart icon for impact assessment

Impact assessment

Applicability, coverage and cost impact of the ₹25,000 ceiling and Code Wages, for every establishment.

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Payroll alignment

Help moving payroll to the new ceiling and the Code definition of Wages, including September 2026 treatment.

Calendar icon for monthly PF compliance

Monthly PF compliance

Enrolments, exits, contributions and returns, managed on the new 15-day cycle.

People icon for contractor PF compliance

Contractor PF compliance

Contractor declarations on the EPFO portal, the 20-day contractors' return and checks on contractors' PF payments.

ID card icon for employee data drives

Employee data drives

KYC, UAN, family nomination and past-employment details collected and updated.

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EPFO liaison

Support with EPFO notices, inspections and claim-related queries, through our PAN-India network.

9,000+ locations serviced PAN-India

Talk to our PF team about where you need support.

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Business impact

What this means for you

Changes under the EPF Scheme, 2026 and their business impact
AreaWhat changesBusiness impactPriority
Payroll costCeiling up from ₹15,000 to ₹25,000. PF is on Wages, at least 50% of remunerationUp to ₹1,200 more employer PF per employee a month where PF was capped at ₹15,000. For 500 such employees: ₹72 lakh a yearHigh
CoverageJoiners with wages of ₹15,000 to ₹25,000 are no longer Excluded EmployeesWider mandatory coverage. Review joiners since 17 SeptemberHigh
ContractorsPrincipal employer must declare all contractors on the EPFO portalContractor default stays the principal employer's responsibilityHigh
Compliance calendar15-day cycle for filings and contributions. 20 days for the contractor returnMore due dates. Late contributions attract damages of 0.25% to 1% a monthMedium
HR and employeesKYC, nomination and past-employment details are mandatoryData collection drive. More employee queries on new withdrawal rulesMedium

Illustrative, at statutory rates and excluding administrative charges. Employee take-home falls by the same amount. Priority is TeamLease RegTech's view.

EPF Scheme 2026 readiness check

Get your organisation
ready for the new Scheme

Our PF specialists review where the new Scheme touches your
payroll and contractors, and help you act on it.

1

30-minute review

A quick walk through your PF setup: ceiling, Wages, coverage and contractors.

2

Applicability report

Which changes apply to you, the cost impact and the priority for each.

3

Plan to execute

Owners and dates for each action, from payroll changes to contractor declarations.

9,000+locations serviced PAN-India
3,000+clients
450+compliance professionals
16,500+contractor audits conducted

Schedule a Consultation

Tell us a little about your organisation and our PF team will call you.

FAQ

EPF Scheme, 2026: common questions

Page last updated:

About the Scheme

  • What is the EPF Scheme, 2026?

    The Employees' Provident Fund Scheme, 2026 is the new PF scheme under the Code on Social Security, 2020. It replaced the Employees' Provident Funds Scheme, 1952 on 29 June 2026, alongside the new EPS and EDLI Schemes, 2026.

  • When does the ₹25,000 PF wage ceiling apply?

    From 17 September 2026. Employers also need to decide how to treat September 2026, since the ceiling applies part-way through the month.

Contribution and coverage

  • What wages is PF calculated on now?

    On Wages as defined in Section 2(88) of the Code on Social Security, which cannot be less than 50% of total remuneration or minimum wages as applicable, whichever is higher. The statutory rate is 12% of Wages up to the ₹25,000 ceiling, so up to ₹3,000 a month.

  • Can contributions go above ₹3,000 a month?

    Yes, by choice. Contributions not to exceed Wages less of deductions; anything above ₹3,000 is a voluntary contribution (AVC) that can be reduced or stopped at any time. The employer can either restrict its own share to ₹3,000 or match on the higher wages.

  • Who is an Excluded Employee?

    An employee whose Wages at joining are above ₹25,000, or an International Worker contributing to home-country social security under an agreement with India with a valid Detachment Certificate. Excluded Employees are not mandatory members but can join by a joint written opt-in. Joiners earning ₹15,000 to ₹25,000 are no longer excluded.

  • Is the principal employer responsible for contractors' PF?

    Yes. The principal employer must declare all contractors on the EPFO portal and file the contractors' return within 20 days of month close. Even where a contractor has its own PF code, the principal employer stays responsible for any default.

Withdrawals and claims

  • What changed for PF withdrawals?

    13 withdrawal provisions are now 3 categories: Essential Personal Needs, Housing Needs and Special Circumstances. All partial withdrawals need 12 months of membership. Education can be withdrawn for 10 times and marriage 5 times, with no cap for illness. Counts restart from 29 June 2026.

  • How much can be withdrawn, and how fast must claims be settled?

    Up to 75% can be withdrawn, with 25% of the balance kept, and the minimum withdrawal is ₹1,000. Claims must be settled within 20 days of receipt; delay without sufficient cause attracts 12% a year penal interest, deducted from the Commissioner's salary. Interest is now paid up to the date of settlement.

Compliance

  • What are the new filing deadlines?

    Enrolments, exits, contributions and IW1 returns are due within 15 days of month close; ownership changes within 15 days of the change; and the contractors' return within 20 days of month close.

  • What happens if contributions are late?

    Damages apply at 0.25% to 1% a month, rising with the length of delay. The rates have been reduced compared with earlier.

  • What should employers do first?

    Move payroll to the ₹25,000 ceiling and the Code definition of Wages, decide September 2026 treatment, and review joiners earning ₹15,000 to ₹25,000 since 17 September. Our PF team can help you plan the rest, with owners and timelines.

Make the move to the EPF
Scheme, 2026 with confidence

Talk to our PF specialists about your payroll, coverage and contractors.

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