New Delhi, Aug. 8 -- On 29 June 2026, the government announced a major labour reform. The Ministry of Labour and Employment announced the Employees' Provident Funds Scheme, 2026, which replaces the earlier Employees' Provident Funds Scheme, 1952. In this article, we will examine the important provisions of the new Act.

The employee's and employer's contributions will be at 12% of the employee's wages. The government has notified the current wage ceiling at Rs.15,000 per month. As per the current wage ceiling, the employee's contribution will be Rs.1,800 per month. The employer makes a matching contribution.

An employee may voluntarily opt to make an additional contribution on wages exceeding Rs.15,000 at 12% or a higher rate. The employ...