The Central government has notified the Employees’ Provident Fund (EPF) Scheme, 2026, replacing the EPF Scheme, 1952, as part of the implementation of the Code on Social Security, 2020. While the new framework does not change the existing PF contribution rates, it provides a legally robust foundation for administering provident fund, pension and insurance benefits to central government employees. With the launch of the new EPF Scheme, many employees are wondering if the rules have changed.
Here’s a simple guide to the new and existing EPF rules, explaining what has changed and what remains the same.
1. EPF Scheme 2026: Has interest rate increased under new EPF scheme?
Although the old EPF scheme is no longer applicable now, the EPF interest rate of 8.25 percent remains unchanged under the new scheme. The EPFO has officially notified the 8.25 percent interest rate on EPF deposits for financial year 2025-26. As per an EPFO circular on July 1, 2026, “The Ministry of Labour and Employment, Government of India, has conveyed the approval of the Central Government under Para 60(1) of Employees’ Provident Fund Scheme, 1952, to credit interest at 8.25 percent for the Financial Year 2025-26 to the account of each member of the EPF Scheme as per the provisions under Para 60 of EPF Scheme, 1952.”
2. EPF Scheme 2026: Has withdrawal structure changed under new scheme?
The new scheme simplifies PF withdrawals by consolidating 13 fragmented rules into three broad categories. The categories are essential needs such as illness, education and marriage; housing-related requirements and special circumstances.
3. EPF Scheme 2026: What is the service duration for partial withdrawals?
According to the new scheme, members can become eligible for most partial withdrawals after completing 12 months of total membership in the Fund. Most partial withdrawals for medical emergencies, housing, marriage or education are now unlocked after just 12 months of EPF membership.
4. EPF Scheme 2026: New scheme introduces Eligible Member Balance
The new scheme has introduced Eligible Member Balance. According to the new notification, “Minimum Balance means an amount equivalent to twenty-five percent of the aggregate of the total contributions made to the Fund to the credit of the member (inclusive of both the employee’s and the employer’s share and interest thereon)… which shall remain to the credit of the member after giving effect to any partial withdrawal.” Therefore, at least 25 percent of your accumulated EPF savings, including your contributions, your employer’s contributions and the interest earned, must stay in your account after a withdrawal.
5. EPF Scheme 2026: Have pension terms and conditions changed?
Pensions will continue to be disbursed monthly to eligible members or beneficiaries. The EPS pension will be calculated at a wage ceiling of Rs 15,000. According to the EPS 2026 scheme notification, the pension calculation formula remains the same. The EPS pension calculation formula is: Pension= (Pensionable Salary (average of last 60 months) X Pensionable Service)/70.
6. EPF Scheme 2026: When can employees withdraw 100 percent from the Fund?
Under this scheme, for medical treatment, housing-related requirements and special circumstances withdrawals of up to 100 percent of the Eligible Member Balance are allowed after completing 12 months of membership.
7. EPF Scheme 2026: Is partial withdrawal allowed after leaving job?
The new scheme allows for partial withdrawal for members who exit the job before completing 12 months. Such members can still make a partial withdrawal but only up to their Eligible Member Balance available on the date of withdrawal.
8. EPF Scheme 2026: What happens to existing members under new scheme?
The Scheme has ensured a smooth transition for existing EPF subscribers. These members will automatically become members under the EPF Scheme, 2026. There will be no impact on their accumulated corpus. Eligible new employees will continue to be brought under the EPF coverage.
9. EPF Scheme 2026: Have UAN rules changed?
The Universal Account Number (UAN) will continue to serve as the permanent identifier for every EPF member. This will ensure seamless portability of accounts when employees change jobs.
10. EPF Scheme 2026: Has contribution rate been changed?
Under the new scheme, the mandatory EPF contribution remains unchanged at 12 per cent of wages each from the employee and employer. The existing 10 percent rate will continue to apply to establishments notified by the central government. The Scheme has also provided greater flexibility by allowing employees to continue making voluntary provident fund (VPF) contributions above the statutory limit.
11. EPF Scheme 2026: Can government reduce EPF?
The Scheme gives the central government the power to temporarily reduce or defer EPF contributions during exceptional situations such as pandemics, epidemics and national disasters.
12. Have rules changed for exempted EPF trusts?
The EPF Scheme, 2026 introduces a detailed governance framework for companies that operate their own exempted provident fund trust and covers among other things the eligibility and composition of trustees, electronic accounting, annual audits and online disclosures.
