7 hrs ago

India’s New EPF Scheme Allows Three-Month Crisis Contribution Relief

EPF Scheme 2026 allows temporary PF contribution cuts for 3 months during a crisis; What employees should know · livemint.com

India’s new EPF rules give the government a way to temporarily reduce or delay provident fund contributions during a major crisis.

A crisis could include a pandemic, endemic, or national disaster.

The government could reduce the employee’s contribution, the employer’s contribution, or both.

The change could cover all of India or only a particular area.

It could last for up to three months at a time.

Employees cannot request this change on their own.

A lower employee contribution could leave more money in a worker’s salary account.

However, less money would be saved for retirement during that period.

Once the order ends, normal contributions would generally apply again.

Key facts

Maximum relief period: Up to three months at a time
Who can activate it: The Central Government, through a government order
Covered contributions: The employee contribution, the employer contribution, or both
Geographic scope: All of India or a particular area
Normal contribution structure: Employees and employers normally contribute 12% of relevant wages, subject to applicable rules
Effect on take-home pay: A reduced employee contribution could temporarily increase salary received
Effect on retirement savings: Lower contributions would reduce the amount added to the provident fund during the relief period
Earlier precedent: India temporarily reduced the statutory contribution rate from 12% to 10% for certain establishments during the COVID-19 pandemic in 2020

livemint.com · 7 hrs ago