New EPF scheme: What it means for your provident fund savings
The EPF Scheme, 2026 replaces the Employees’ Provident Funds Scheme, 1952. (AI image) Existing PF members continue without any disruption What the new EPF Scheme
The EPF Scheme, 2026 replaces the Employees’ Provident Funds Scheme, 1952. (AI image) Existing PF members continue without any disruption What the new EPF Scheme means for existing members Greater flexibility to build retirement savings Example Consider an employee earning Rs. 80,000 per month. While mandatory provident fund contributions may be restricted to the statutory wage ceiling, the employee may voluntarily choose to contribute on the full salary to build a larger retirement fund.
A few years later, if the employee takes a housing loan and requires greater monthly cash flow, the employee may reduce or discontinue such additional voluntary contributions. The new Scheme expressly recognises this flexibility. For employees, this provides greater control over long-term savings planning without affecting the core provident fund benefits available under the Scheme. EPF continues to support important life events When can employees make partial withdrawals from PF?
Note: "Eligible Member Balance" means the balance standing to the member's credit after maintaining the minimum balance required under the Scheme. Members are required to maintain a minimum balance equivalent to 25% of aggregate total contributions in the Fund. Example An employee facing substantial medical expenses or seeking financial assistance for a child’s higher education may continue to access provident fund savings under the prescribed withdrawal provisions.
At the same time, a part of the retirement corpus remains protected for future needs. Greater protection for contract workers Digital records become even more important New EPF Scheme 2026: 5 things employees should know Looking ahead (The author, Puneet Gupta is Partner, People Advisory Services Tax at EY India)
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