The true strength of a nation’s workforce lies not only in creating employment but also in securing the future of every worker and their family. Social security, therefore, is much more than a legal mandate, it is a reflection of a nation’s commitment to economic stability, social justice and inclusive growth. With the notification of the Employees’ Provident Funds Scheme, 2026, Employees’ Pension Scheme, 2026 and Employees’ Deposit Linked Insurance Scheme, 2026 under the Code on Social Security, 2020, India has taken a decisive step towards modernising its social security framework. The new Schemes preserve the well-established benefits of provident fund, pension and insurance while introducing a robust digital compliance ecosystem, strengthening governance standards and promoting transparency, efficiency and ease of compliance. These reforms represent not merely a legislative transition, but a transformational shift in the administration of social security for employers, employees and enforcement authorities alike.”
 Introduction
After nearly seven decades of operation under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (“EPF Act”), India has entered a new era of social security legislation. Pursuant to the enactment of the Code on Social Security, 2020 (Code No. 36 of 2020), the Central Government has notified three comprehensive schemes replacing the existing provident fund, pension and insurance schemes.
The following Schemes have been notified on 29 June 2026:
| Scheme | Notification | Statutory Authority |
| Employees’ Provident Funds Scheme, 2026 | G.S.R. 525(E) | Section 15(1)(a) of the Code |
| Employees’ Deposit Linked Insurance Scheme, 2026 | G.S.R. 526(E) | Section 15(1)(c) of the Code |
| Employees’ Pension Scheme, 2026 | G.S.R. 527(E) | Section 15(1)(b) of the Code |
The notifications expressly supersede the EPF Scheme, 1952, Employees’ Pension Scheme, 1995, and Employees’ Deposit Linked Insurance Scheme, 1976, while preserving actions already taken under the earlier schemes.
Although the quantum of benefits remains substantially unchanged, the compliance architecture has undergone a significant transformation. The emphasis has shifted towards digital governance, electronic record keeping, enhanced accountability of employers, transparent administration of exempted trusts and integrated online compliance.Â
Legislative Framework
Chapter III of the Code on Social Security, 2020 deals with Provident Fund, Pension and Deposit Linked Insurance.
The legal framework may be summarized as follows:
| Provision | Subject Matter |
| Section 15 | Power of Central Government to frame EPF, Pension and Insurance Schemes |
| Section 16 | Contributions by employer and employee |
| Sections 20 & 21 | Applicability of Chapter III |
| Section 122 | Inspector-cum-Facilitator |
| Section 123 | Maintenance of registers and records |
| Sections 125–129 | Recovery, interest, damages and other compliances |
| Section 133 | Penalties |
| Section 143 | Exemption from the Schemes |
The newly notified Schemes derive their statutory force from these provisions and therefore have the same legal enforceability as the Code itself.
Employees’ Provident Funds Scheme, 2026
Applicability
Paragraph 1 of the EPF Scheme provides that the Scheme shall apply to establishments covered under Sections 20, 21 and 143 of the Code. It also extends to Government establishments employing the prescribed number of employees where contributory provident fund benefits are not otherwise available.
Unlike the earlier Scheme, the applicability provision is now expressly aligned with the Code, thereby eliminating the need to separately refer to the repealed EPF Act.
Membership
Paragraph 9 contains one of the most important transition provisions.
It provides that every employee who was already a member under the Employees’ Provident Funds Scheme, 1952 shall automatically become a member of the new Scheme. Similarly, every employee joining a covered establishment after commencement of the Scheme is required to become a member from the date of joining, unless he qualifies as an excluded employee under Paragraph 2(f).
Thus, continuity of membership is fully preserved notwithstanding the repeal of the earlier Scheme.
Higher Wage Contributions
Paragraph 9(4) formally recognises the option of employer and employee to jointly opt for provident fund contributions on wages exceeding the statutory wage ceiling.
This provision assumes considerable importance in light of the Supreme Court judgment in EPFO v. Sunil Kumar B. (2022) regarding higher pension contributions. While the Scheme continues the concept of higher wage contributions, the employer remains responsible for payment of administrative charges and all statutory compliances in respect of such employees.
Contributions
Paragraph 18, read with Section 16 of the Code, prescribes the contribution mechanism.
The employer’s contribution continues to be 12% of wages, with a reduced contribution of 10% being permissible for notified establishments. The Central Government also retains the power to reduce or defer contributions during pandemics, epidemics or national disasters.
The provision substantially corresponds to Paragraph 29 of the EPF Scheme, 1952 but now expressly incorporates emergency powers.
Voluntary Provident Fund
Paragraph 19 enables an employee to contribute voluntarily beyond the statutory wage ceiling.
Unlike statutory contributions, the employer is not obliged to make a matching contribution. However, if the employer voluntarily contributes additional amounts, such contribution shall also form part of the Provident Fund.
Employers are advised to incorporate a Provident Fund clause in the Appointment Letters, Employment Contracts, and HR Policies stating that Provident Fund contributions shall be governed by the provisions of the Code on Social Security, 2020 and the Employees’ Provident Funds Scheme, 2026, as amended from time to time. Where an employee opts to contribute to the Voluntary Provident Fund (VPF) under Paragraph 19 of the Employees’ Provident Funds Scheme, 2026, the employer should obtain a separate written declaration or authorisation from the employee specifying the percentage or amount of voluntary contribution. Such authorisation should be retained as part of the employee’s service records to facilitate payroll administration, ensure consistency in deductions, and support compliance under Scheme.
Employer’s Responsibility
Paragraph 20 reiterates the long-established principle that the employer is primarily liable for payment of both employer’s and employee’s contributions, including employees engaged through contractors.
This provision complements Section 16 of the Code, thereby ensuring that employees do not suffer on account of defaults by contractors.
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Digital Compliance – A New Compliance Culture
Perhaps the most remarkable feature of the 2026 Scheme is the statutory recognition of digital governance.
Unlike the 1952 Scheme, where many electronic facilities were introduced through administrative circulars, the 2026 Scheme incorporates these requirements within the Scheme itself.
Paragraph 24 requires every employer to:
- generate and link UANs;
- facilitate download of e-Passbooks;
- upload monthly joining and exit details;
- upload Electronic Challan-cum-Returns (ECR);
- submit ownership returns;
- report changes in ownership; and
- maintain electronic compliance records.
Similarly, Paragraph 25 requires employees to furnish:
- Aadhaar;
- PAN;
- Aadhaar-seeded bank account;
- UAN;
- nomination details; and
- previous employment particulars.
These provisions reflect the Government’s clear intention to establish a completely digital compliance ecosystem.
Registers and Records
A notable reform introduced through Paragraph 24(2)(x), read with Section 123 of the Code, is the statutory requirement to maintain electronic registers.
The employer is now required to maintain:
- Register of Employees;
- Muster Roll;
- Wage Register;
- Contribution Register;
- Ownership Register;
- Contractor Register;
- UAN Register;
- Electronic Books of Account; and
- other prescribed employment records.
Unlike the earlier Scheme, electronic maintenance is now expressly recognized.
Exempted Establishments – Strengthened Governance
One of the most significant reforms introduced by the new Scheme relates to exempted establishments.
Paragraphs 12 to 17, read with Section 143 of the Code, comprehensively regulate:
- grant of exemption;
- constitution of Board of Trustees;
- electronic maintenance of accounts;
- investment norms;
- audit;
- online filing;
- online settlement of claims;
- dematerialised investments;
- renewal of exemption; and
- surrender or cancellation of exemption.
Unlike the earlier Scheme, the governance standards applicable to exempted trusts have been substantially strengthened, particularly in relation to transparency and digital administration.
Employees’ Pension Scheme, 2026
The Employees’ Pension Scheme continues the pension architecture established in 1995 while aligning it with the Code.
Paragraph 4 continues the contribution of 8.33% of wages towards the Pension Fund from the employer’s contribution under Section 16 of the Code, together with Government contribution as prescribed.
The Scheme preserves:
- pensionable service (Paragraph 10);
- pensionable wages (Paragraph 11);
- superannuation pension;
- early pension;
- widow pension;
- children’s pension;
- orphan pension;
- disablement pension; and
- withdrawal benefit.
Employees’ Deposit Linked Insurance Scheme, 2026
The EDLI Scheme continues to provide insurance protection to employees’ families in the event of death during service.
Paragraph 5, read with Section 16(1)(c) of the Code, governs employer contribution, while Paragraph 21 prescribes the computation of assurance benefit linked to:
- average PF balance;
- average monthly wages;
- continuous service; and
- prescribed minimum and maximum limits.
The Scheme further provides for online nomination, electronic claims and time-bound settlement of insurance benefits.
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Comparative Analysis – Earlier Scheme vs. New Scheme
The 2026 Schemes do not fundamentally alter the nature of provident fund, pension or insurance benefits. Instead, they modernize the compliance framework.
| Earlier Scheme | New Scheme |
| Manual records permitted | Electronic records specifically recognized |
| Online facilities through administrative instructions | Digital compliance embedded in the Scheme |
| Limited ownership disclosures | Mandatory ownership return and periodic updation |
| Limited governance of exempted trusts | Comprehensive governance framework with electronic accounting and audits |
| Paper-based claim processing in many cases | Online claims and e-Passbook recognized by the Scheme |
| Limited contractor reporting | Dedicated contractor reporting mechanism |
| Manual inspection culture | Digital inspection supported by electronic records |
Conclusion
The Employees’ Provident Funds Scheme, 2026, Employees’ Pension Scheme, 2026 and Employees’ Deposit Linked Insurance Scheme, 2026 represent an evolutionary rather than a revolutionary reform. The underlying social security benefits remain substantially intact; however, the administration of these benefits has been comprehensively modernized.
By embedding electronic governance, statutory recognition of digital compliance, enhanced accountability of employers, stronger governance of exempted trusts and integration with the Code on Social Security, 2020, the Government has laid the foundation for a more transparent and efficient social security system.
For employers, the emphasis must now shift beyond timely payment of contributions to comprehensive compliance with electronic reporting, record maintenance, ownership disclosures, contractor management and inspection preparedness.
Considering the Employees’ Provident Fund (EPF), Employees’ Pension Scheme (EPS), and Employees’ Deposit Linked Insurance (EDLI) Scheme, 2026, employers must develop a fresh understanding of the Code-centric compliance framework.
