Key Highlights – EPF Scheme
Membership
- EPF Scheme is mandatorily applicable to such employees whose wages do not exceed the notified wage ceiling (currently INR 15,000 per month).
- Employees whose wages exceed notified wage ceiling qualify as “excluded employees”; however, such employees and their employer have an option to jointly opt to contribute on wages above the statutory wage ceiling.
- Employees who were members under the EPF Scheme, 1952 shall continue to be members under the EPF Scheme.
- Excluded / exempt employees become members once their exemption ends.
Contribution and charges
- The employer’s and employee’s contribution shall be at 12 percent of “wages” payable to such employee.
- If the monthly wage exceeds the notified wage ceiling (currently INR 15,000 per month), contributions can be made voluntarily on wages or limited to contributions payable on the wage ceiling.
- In addition to the above, employees can also opt to contribute voluntarily in excess of the notified wage ceiling with no obligation on their employers to make a matching contribution.
- The scheme also 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.
Provisions pertaining to International Workers (IWs)
- IWs continue to be defined as a foreign passport holder working in India in an establishment covered under CoSS and an Indian employee working/going to work in a foreign country with which India has a social security agreement (SSA) and who is eligible for benefits under that SSA.
- Nepalese and Bhutanese nationals continue to be treated as Indian workers and not as IWs.
- IWs qualifying as detached workers under an SSA and contributing to their home-country social security system can claim an exemption from contributions.
- All non-exempt IWs must become EPF members from the date of joining the establishment or the date the scheme becomes applicable, whichever is later.
- Existing IW members under the EPF Scheme, 1952 shall continue to be members under the EPF Scheme.
- IWs continue to be members until EPF accumulations are withdrawn, an exemption applies, or benefits under SSA are settled.
- EPF accumulations may be withdrawn on retirement (i.e., on attaining the age of 58 years), permanent incapacity, or as permitted under the applicable SSA.
- Employers must electronically maintain and report IW details, including nationality, wages, contributions, membership status, and exits.
Duties of principal employer and contractor
- “Principal employer” means an employer with whom employees are engaged by or through a contractor.
- The principal employer will be responsible for paying contributions towards its contract employees, if the contractor is not registered independently.
- The principal employer is required to file Form X to declare all contractors it engaged.
- Contractors are required to inform the principal employers within 10 days from end of the month in Form XI the name, UAN, wages, and contributions payable in respect of contractual employees.
- The principal employer within 20 days from end of the month is required to file Form XII to show aggregate recoveries made from wages of contractual employees.
Compliances
Employers are required to:
- File a consolidated return in the prescribed Form V within 15 days from application of the scheme.
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- Report employees who became eligible for EPF membership during the previous month as part of the monthly return filing.
- Upload monthly electronic returns on the prescribed portal within 15 days from the end of each month.
- Maintain and furnish prescribed employee and contribution records electronically through the designated EPFO portal.
A late fee of INR 500 per day is required to be paid for delay in filing of any return under the scheme.
Partial withdrawal
Employees are allowed to make partial withdrawal for specified purposes (marriage, education, housing, illness, etc.) after completion of 12 months of membership, subject to maintaining a minimum balance of 25 percent of the aggregate contributions.
Complete withdrawal
Complete withdrawal for members other than IWs is allowed under the following circumstances:
- Retirement after attaining the age of 55 years,
- Retirement on account of permanent or total incapacity to work,
- Migration from India for permanent settlement abroad, or
- Other contingencies.
In any other circumstance, a member shall not be eligible to withdraw for a period of 12 months from the date he or she ceases to be in employment.
Inoperative accounts
Any amount becoming due to a member as a result of the following circumstances shall be transferred to an account called an “inoperative account”:
- Member retiring after attaining the age of 55, or
- Member permanently migrating abroad, or
- Death of the member; and
No withdrawal claim is made within 36 months from the date the accumulation is payable.
No interest shall be credited once the account becomes inoperative.
Special Provisions – EPF Scheme
Employees’ Enrolment Campaign, 2026
- Provides employers an opportunity to enroll employees who joined between 1 April 2009 and 31 March 2026 and are still employed as on the declaration date but were either not enrolled or were omitted earlier.
- Aims to increase social security coverage by enabling voluntary compliance with reduced litigation and simplified enrolment procedures.
- Covers historical non-compliance periods and facilitates updating of employee records through a structured compliance window.
- Ceases to operate on 31 October 2026.
VISHWAS, 2026
- Introduces a dispute resolution/compliance mechanism for employers with past PF defaults.
- Provides reduced damages and penalty relief for eligible historical defaults upon fulfilment of prescribed conditions.
- Intended to encourage voluntary settlement of legacy cases and improve recovery of dues while reducing long-pending disputes.
- Shall be valid for a period of six months from the date of notification of the scheme and could be further extended for a period not exceeding six months.
AMNESTY, 2026
- Allows certain establishments operating PF trusts without formal EPFO exemption approval to regularize their status retrospectively.
- Offers a pathway for obtaining recognition where employee benefits, contributions, and interest credits were broadly in line with statutory requirements.
- Shall be valid for a period of six months from the date of notification of the scheme and could be further extended for a period not exceeding six months.
Key Highlights – EPS
Rate of contribution
- Employers are required to contribute 8.33 percent of wages up to the notified wage ceiling towards the pension fund within 15 days from close of every month.
- For members who had opted for higher contributions, employer is required to contribute 9.49 percent of wages.
Withdrawal benefit
For members who exit before becoming eligible for monthly pension, a withdrawal benefit is allowed. However, withdrawal benefit is available only after 36 months from the date the last contribution became due or on attaining superannuation, whichever is earlier.
Key highlights - EDLI Scheme
Contribution
Employer contribution is calculated on wages as defined under the CoSS. The rate of contribution shall be notified by the Central Government from time to time.
Assurance Benefit
- EDLI Scheme, 2026 contains a base assurance benefit and an enhanced assurance benefit for employees with 12 months’ continuous employment before death. The beneficiary receives the higher amount when the enhanced-benefit rule applies.
- A minimum assured base benefit of INR 50,000 is available to the dependents of the deceased member. The base benefit is capped to a maximum of INR 100,000.
- If the deceased member was in employment for a continuous period of 12 months preceding the month of death, the assurance benefit is calculated using the enhanced formula. A minimum assurance benefit of INR 250,000 and a maximum benefit of INR 700,000 is available for continuous service cases.
