Is your PF also deducted? The government has implemented EPS 2026 and changed the pension rules. Find out what the new changes are, how much interest you will get and who will benefit.
EPFO New Rules 2026:The Ministry of Labor and Employment in the country has brought about a major overhaul of the three-decade-old system of pension and provident funds. Now ‘Employees Pension Scheme, 1995’ (EPS-95) and ‘Employees Family Pension Scheme, 1971’ have been replaced by ‘Employees Pension Scheme, 2026’. These changes are effective from June 29, 2026.
What changed?
The main objective of this new system is to make the pension process simple and digital.
Quick Claim: Now pension claims will be disposed of within a maximum of 20 days.
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Interest on delay: If EPFO delays processing the claim without any valid reason, interest at the rate of 12% will be paid to the employee.
Additional Pension: Higher pension options are more clearly included in the new scheme.
Digital Compliance: All the process has been digitized for employers (owners), so that transparency will increase.
Do the old rules remain?
Many employees worry whether their contributions will change. So the answer is: no.
Contribution: Employee and owner contributions will remain the same as before.
EPS Contribution: The contribution of 8.33% of salary by the employer to the pension fund and 1.16% of the government contribution will continue as before.
Eligibility: Employees who were covered under the old EPS-95 or Family Pension Scheme, have automatically become members of the new EPS-2026.
How will this change benefit the common employee?
Safety: Guaranteed minimum return on government contribution.
Transparency: Due to digital processing, paper work will be reduced and work will be done faster.
Responsibility: The introduction of the rule of interest on delayed claims has increased the liability of EPFO, which is a direct benefit to the employees.
Things to remember
The scheme is applicable from June 29, 2026.
It is important to keep Aadhaar card and latest bank details updated with your PF account, so that there is no delay in claims.
This is being seen as a modern amendment to the PF rules, brought under the ‘Social Security Code’.
This step taken by EPFO will make retirement planning of employees easier and safer. If you are employed in a private company, now the processing of your pension fund will be faster and more accountable than before.
