EPF, EPS and EDLI Schemes 2026
Complete Guide for Employers and Employees

In landmark shift towards modernizing workforce compliance and employee welfare Ministry of Labor and Employment under Section 15 of the Code on Social Security, 2020, has notified three unified social security schemes which came into effect on June 29th, 2026.

These three newly introduced schemes supersede Employee’s Provident Funds Scheme of 1952, Employee’s Pension Scheme of 1995 and Employee’s Deposit-Linked Insurance Scheme of 1976 and create a three-tier statutory safety net. The 2026 regulations institute a modern, digital first compliance and governance standard. To support this transition government has also introduced three companion relief initiatives i.e Employees’ Enrolment Campaign (EEC), VISHWAS and AMNESTY providing employers with a time bound opportunity to regularize past worker records and resolve legacy dispute liabilities.

Employee’s Provident Funds (EPF) Scheme, 2026

Notified under Section 15(a) of Code on Social Security, 2020 EPF Scheme, 2026 maintains the foundational 12% contribution architecture and digitizes administrative workflow and updates withdrawal, compliance and trust governance rules.

1. Contribution Structure
   • Mandatory contribution remains 12% of wages for both employer and employee, capped at the statutory wage ceiling of Rs.15000/month.
   • Employees can contribute above the Rs.15000 ceiling voluntarily. Employer matching on voluntary amount is optional, but extra contribution incure standard administrative charges.
2. Streamlined Withdrawals
   • Simplified Partial Advances consolidated into 3 categories
     • Essential Needs: Illness, education (up to 10 % per career), and marriage (up to 5 times per career).
     • Housing: Home construction, purchase, or loan repayment.
     • Special Circumstances: Capped at 100% of the eligible balance (total accumulated balance minus a mandatory 25% minimum retention floor)
3. Digitized Employer Compliance
   • Electronic Filings: Physical filings are eliminated. Employer shall file:
     • Form V (Consolidated Employee Return), filed within fifteen (15) days of coverage.
     • Form VII (Electronic Challan-cum-Return/ECR), filed monthly within fifteen (15) days of month-end.
     • Form VI (Ownership Return), Disclosing directors, partners or managers on registration and updated within fifteen (15) days of any change.
   • Principal Employer Liability: Principal employers are explicitly held responsible for the PF compliance of contract workers if the contractor is not independently registered.
   • Strict Settlement Timelines: Claims must be settled within 20 days
4. Exempted PF Trust Regulations
   • 3-Year Initial Exemption: Formal exemptions for private company run PF trusts are capped at an initial 3-year validity, subject to renewal based on positive net worth and audit criteria.
   • Private Trusts cannot credit interest to members accounts higher than 200 basis point above EPFO notified rates.
5. Paragraph 60 of the EPF Scheme, 2026 explicitly creates a statutory pathway to resolve legacy non-compliance and litigations through distinct sub-schemes:

   Legal Scheme Name	Statutory Coverage / Section	Window Period & Legal Effect
   VISHWAS, 2026	Disputes under Section 14B of the 1952 Act and Section 128 of the Code on Social Security, 2020.	6 Months from 29 June 2026. Allows employers to settle pending penalty and damages disputes for defaults committed up to 14 June 2024 at lower, recomputed concessional rates.
   AMNESTY, 2026	Retrospective exemptions under Section 17 of the 1952 Act and Section 143 of the Code on Social Security, 2020.	6 Months from July 2026. Allows establishments managing private Income-Tax recognized PF trusts to regularize and formalize their statutory exemption status retrospectively.
   Employee’s Enrolment Campaign, 2026	Registration frameworks under the Code on Social Security.	Ongoing. Protects employers from standard penal liabilities if they voluntarily declare and enroll previously unmapped workers.

Comparison Between EPF Scheme, 1952 vs. EPF Scheme, 2026

Employee’s Pension Scheme (EPS), 2026

Notified under Section 15(b) of Code on Social Security, 2020 EPS, 2026 supersedes the earlier EPS scheme of 1995 and Family Pension scheme, 1971 while ensuring automatic continuity and preservation of accrued rights for all existing members.

1. Statutory Framework and Financial Allocation
   • Employer Share: 8.33% of the employee’s statutory wages (up to the Rs.15000 monthly wage ceiling or higher if opted under the joint higher pension option) is diverted to the Pension Fund.
   • Central Government Contribution: 1.16% of statutory wages up to the wage ceiling.
   • Pensionable Salary: Calculated as the average monthly basic pay plus dearness allowance (DA) drawn during the last sixty (60) month of eligible service prior to exit.
2. 36- Month Waiting Period for Withdrawal Benefits, Members who leave covered employment before completing 10 years of service can no longer claim a lump-sum withdrawal benefit immediately. Under EPS Scheme, 2026, withdrawal can be filed after:
   • 36 continuous months from the last contribution due date, or
   • Reaching the age of superannuation (whichever is earlier).
3. Statutory Mandate for Higher Pension Option: Eligible members who jointly opt with their employer to contribute on actual wages (allocating 9.49% of employer contribution) receive legally backed higher pension rights under codified rules.
4. Strict 20-Day Settlement Timeline: Pension Claim Processing is bound by a statutory 20-day Service Level Agreement (SLA). Unjustified processing delays beyond 20 days incur a 12% per annum simple interest penalty payable directly to the beneficiary and recoverable from the defaulting official.
5. Deferral Increment: Members who chose to defer receiving their superannuation pension beyond 58 years up to age 60 earn a statutory incremental enhancement of 4% per additional year of deferral.
6. Streamlined Priority of Beneficiaries: Establishes a strict legal hierarchy for family pension disbursal in the absence of a surviving spouse/children.
7. Governance & Audit Controls:
   • Annual Actuarial Valuation, Central Board of Trustees (CBT) must conduct mandatory yearly actuarial valuations of the Pension Fund to assess long-term solvency.
   • Cross-Border Totalization: Incorporates specific detachment and totalization rules for International Workers, allowing foreign service under bilateral Social Security Agreements (SSA’s) to count toward the ten (10) year qualifying service requirement.

Comparison Between EPS, 1995 vs. EPS, 2026

Employee’s Deposit-Linked Insurance Scheme (EDLI), 2026

Notified under Section 15(c) of Code on Social Security, 2020, EDLI Scheme, 2026 formally supersedes the legacy EDLI Scheme of 1976. It provides automatic life insurance coverage to all active members of the Employees Provident fund, including employees of exempted private PF trust.

1. Continuity of Service Rules (60-Day Gap Clause)
   For Calculating the 12-month continuous service required for maximum payouts, a gap of up to 60- days between changing jobs is ignored. Multiple jobs under same UAN are aggregated together for total wages and service history.
2. Death Within 6 Months of Last Contribution
   If an employee passes away within 6 months of last PF contribution while still on the employer’s active roll, the family remains fully eligible for EDLI assurance benefits.
3. Strict 20-Day Service Level Agreement (SLA) & Officer Liability
   Claims must be processed and paid electronically within a statutory deadline of 20 days from receipt of a complete application. Unjustified delays attract 12% per annum penal interest, which is directly recoverable from the salary of defaulting regional PF Commissioner.
4. Direct Employer Liability for Private Group Insurance (Exempted Units)
   Establishments exempted from EDLI through private IRDAI-approved group term insurance policies face strict liability.

Comparison Between EDLI Scheme, 1976 vs. EDLI Scheme, 2026

Conclusion

The unified notification of EPF, EPS and EDLI Schemes under Section 15 of the Code on Social Security, 2020 marks a structural evolution in India’s labor compliance and social security regime. By replacing legacy frameworks with digitized administration, strict 20-day SLA bound claim settlements, and unified withdrawal and pension terms, 2026 regulations establish a more predictable ecosystem for both employers and workforce members. Ultimately, these reforms successfully merge digital governance with social welfare, delivering faster, guaranteed benefit disbursals for workers while providing employers with a modernized, legally robust compliance framework.

Frequently Asked Questions (FAQS)

Disclaimer

The information provided in this article is intended for general informational purposes only and should not be construed as legal advice. The content of this article is not intended to create and receipt of it does not constitute any relationship. Readers should not act upon this information without seeking professional legal counsel.