Employers Take Note: Labour Ministry Notifies Contribution Rates Under EPF, EPS and EDLI Schemes, 2026

On 1 July 2026, the Ministry of Labour and Employment issued three notifications specifying the contribution rates under the following schemes:

• Employees’ Provident Funds Scheme, 2026 (EPF Scheme)

• Employees’ Pension Scheme, 2026 (EPS Scheme)

• Employees’ Deposit Linked Insurance Scheme, 2026 (EDLI Scheme)

Key Highlights:

1. The Ministry has prescribed the contribution rates payable under the social security framework established under the Code on Social Security, 2020.

2. The notified contribution rates are as follows:

   Scheme	Contribution Rates
   Employees’ Provident Funds Scheme, 2026	12% of wages (both employer and employee contributions)
   Employees’ Pension Scheme, 2026	8.33% of wages (employer contributions)
   Employees’ Deposit Linked Insurance Scheme, 2026	0.5% of wages (employer contributions)

3. The notification under the Employees’ Deposit Linked Insurance Scheme, 2026 provides:

   • Employer contribution is fixed at 0.5% of wages.

   • The contribution is payable every month to the Insurance Fund established under the Code.

   • Effective from 29 June 2026, being the date of commencement of the EDLI Scheme, 2026.

4. The notification under the Employees’ Pension Scheme, 2026 provides:

   • Employer contribution is fixed at 8⅓% (8.33%) of wages.

   • The contribution is payable every month to the Pension Fund established under the Code.

   • The contribution is effective from 29 June 2026, the date of commencement of the EPS Scheme, 2026.

5. The notification under the Employees’ Provident Funds Scheme, 2026 provides:

   • Employer and employee contributions are prescribed at 12% of wages.

   • The notification supersedes the earlier notification dated 9 April 1997.

   • The notification is deemed to have come into force from 21 November 2025.

   • The 12% contribution requirement does not apply to the following establishments:

     ○ Establishments operating under approved resolution or repayment plans under the Insolvency and Bankruptcy Code, 2016;

     ○ Jute industry establishments;

     ○ Beedi industry establishments;

     ○ Brick industry establishments;

     ○ Coir industry establishments (other than the spinning sector); and

     ○ Guar gum factories.

The notifications provide clarity on contribution obligations under the new social security regime and facilitate the implementation of the EPF, EPS and EDLI Schemes, 2026 under the Code on Social Security, 2020.

[Employer Insurance Contribution Notification, dt. 1-7-2026]

[Employer Pension Contribution Notification, dt. 1-7-2026]

[Provident Fund Contribution Rate, dt. 1-7-2026]