Archive · 15 Sep 2026
India’s New EPF Scheme Allows Three-Month Crisis Contribution Relief
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.
The Employees’ Provident Fund Scheme, 2026 allows the Central Government to defer or reduce employee contributions, employer contributions, or both during a pandemic, endemic, or national disaster.
The relief can last for up to three months at a time and may apply across India or only in a specified area.
Employees cannot choose the reduction themselves; it requires a government order.
Lower employee contributions could increase take-home pay temporarily but reduce the amount added to retirement savings.
Normal EPF contributions would resume after the specified period unless another government order extends or changes the relief.
- Who
- The Central Government, employees, and employers covered by the Employees’ Provident Fund system.
- What
- A provision allows the government to temporarily defer or reduce employee and/or employer EPF contributions.
- When
- Under the Employees’ Provident Fund Scheme, 2026, during a specified crisis period of up to three months at a time.
- Where
- Across India or in a particular area, as determined by a government order.
- Why
- To provide temporary cash-flow relief during a pandemic, endemic, or national disaster.
- 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