The Ministry of Labour & Employment has notified the Employees’ Provident Funds (EPF) Scheme, 2026, Employees’ Pension Scheme, 2026, and Employees’ Deposit-Linked Insurance (EDLI) Scheme, 2026 under the Code on Social Security, with a strong emphasis on digital compliance and faster settlement of provident fund, pension and insurance claims.

The new schemes, which will replace the existing EPF, pension and insurance schemes, retain the existing contribution structure while introducing stricter accountability for delays in claim processing by the Employees' Provident Fund Organisation (EPFO).

One of the key provisions mandates that EPFO officials settle complete claims for provident fund withdrawals, pension and group insurance within 20 days. Failure to do so without sufficient reason could attract a penal interest of 12 per cent per annum.

The schemes state: "Where the Commissioner fails without sufficient cause to settle a claim complete in all respects within twenty days, the Commissioner shall be liable for the delay beyond the said period and penal interest at the rate of twelve per cent per annum may be charged on the benefit amount, which shall be deducted from the salary of the Commissioner."

The newly notified schemes will replace the Employees' Provident Funds Scheme, 1952, the Employees' Family Pension Scheme, 1971, the Employees' Pension Scheme, 1995, and the Employees' Deposit-Linked Insurance Scheme, 1976.

A senior government official told PTI that a provision for penal interest on delayed settlement of claims already existed under the earlier schemes.

He explained that earlier officials were required to pay the declared rate of interest applicable on PF deposits for delayed settlements, but the new schemes have fixed the penal interest rate at 12 per cent.

The official said there is no major change in the contribution pattern under the revised social security framework. Both employers and employees will continue to contribute 12 per cent of the employee's basic wage towards EPFO-managed social security schemes.

Of the employer's contribution, 8.33 per cent will continue to be allocated to the pension scheme, while the government will provide a subsidy of 1.16 per cent, as under the existing system.

The official said the new framework places greater emphasis on digital compliance by both employers and the EPFO to ensure members can access services and complete transactions online without delays.

The schemes also require exempted establishments, or EPF trusts regulated by the EPFO, to provide online facilities for members to file claims and submit other applications.