The government has notified the new Employees' Provident Fund (EPF) Scheme, 2026. This replaces the decades old EPF Scheme of 1952, bringing a series of new reforms for the services and benefits offered by the Employees' Provident Fund Organisation to the salaried employees in India.
The new scheme came into effect on June 29 and is focussed on improving digital compliance, administrative efficiency, account portability, and aligning the provident fund system with the new labour codes.
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Under the new system, the government has clarified on many earlier rules such as mandatory PF deduction capped at 12% of Rs 15,000 wage ceiling. Moreover, the scheme also revises rules for partial withdrawals, allowing members to withdraw funds for medical treatment, education, marriage, housing, and other approved purposes.
The revised system also promotes electronic filings, online claim settlements, e-passbooks with a more reformed structure for easier access for the members.
Will Govt Change Interest Rate?
The provident fund currently offers an interest rate of 8.25% p.a. In this scheme, the interest is calculated every month on the running balance but credited once a year to members' accounts.
It helps employees build a strong retirement corpus over time and is considered one of the best government-backed savings options due to attractive returns. After meeting certain service conditions and compliance rules, the maturity amount along with interest can also be tax-free.
With the new rules notified, any employees are wondering if there will also be any changes to this interest rate. Last week, the EPFO officially notified an 8.25% interest rate on EPF deposits for the financial year 2025–26. The rate was approved by the Ministry of Labour and Employment under the EPF Scheme, 1952.
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The decision on revising or crediting interest rates for FY27, which started on April 1, 2026, under the new EPF framework will be taken by the government in due course. The interest rates for PF schemes are periodically reviewed by the government and are finalised based on factors such cost of living, inflation, etc. As of now, the government has not indicated any changes to the current rates even with the new scheme notified.
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