Government may reduce EPF contributions during disasters under new rules

CNN Central News & Network-ITDC India Epress/ITDC News Bhopal: An important emergency provision has been added to the new rules for employees linked to EPF. Under the Employees’ Provident Funds Scheme, 2026, the central government may, in exceptional circumstances such as a pandemic, endemic situation or national disaster, order a temporary reduction or deferment of the EPF contributions of employers and employees.

According to the rule, this relief in contributions can be granted for a maximum of three months at a time. Depending on the need, the government may reduce or suspend the employee’s contribution, the employer’s contribution, or both. The objective is to reduce the financial pressure on employees and institutions during a serious crisis. However, no change has been made to the existing EPF contribution system under normal circumstances. Usually, employee and employer contributions continue at the rate of 12 percent. The provision for a 10 percent rate for some notified establishments also remains in place. This means that every employee’s PF contribution will not be reduced suddenly. Any reduction or deferment will apply only when the central government issues a specific order in the event of a pandemic, endemic situation or national disaster.

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