EPF Scheme 2026: New Rules for Exempted PF Trusts
UPSC / SSC current affairs note · Economy
Why in news
The Ministry of Labour and Employment has notified the Employees' Provident Fund Scheme, 2026 under the Code on Social Security, 2020. It introduces an interest rate ceiling, mandatory digital compliance, and stricter governance norms for exempted PF trusts, affecting employees covered by such trusts.
Background
Exempted PF trusts are run by eligible employers who manage provident fund accounts themselves instead of remitting contributions to the EPFO. The new scheme updates conditions for retaining exemption.
Key facts
The EPF Scheme 2026 introduces an interest rate ceiling: exempted trusts cannot credit interest exceeding the rate notified by the Central Government.
Exempted PF trusts must maintain electronic records, preserve members' accounts in digital form, issue annual statements, and provide electronic access to PF information.
Stricter governance norms and time-bound exemptions are introduced for employers managing PF through their own trusts.
The scheme is notified under the Code on Social Security, 2020.
Exemption is available only if employees receive benefits not less favourable than under the EPF Scheme.
Members' PF accumulations can be transferred between exempted trusts or between an exempted trust and EPFO on change of employment.
Prelims pointers
- Employees' Provident Fund Scheme, 2026
- Code on Social Security, 2020
- Ministry of Labour and Employment
- Employees' Provident Fund Organisation (EPFO)
- Exempted PF trusts
Mains angles
- GS2: Government policies and interventions for social security – analyse the impact of new norms on workers' welfare.
- GS3: Role of digital governance in improving compliance and transparency in social security schemes.
- GS2: Labour reforms – discuss the balance between flexibility for employers and protection of employees' interests.