EPFO Explained: 2026 Scheme Updates, Contribution Rules, Interest Rate and UAN Services

What EPFO Does

The Employees' Provident Fund Organisation (EPFO) is India's main retirement savings body for salaried workers, operating under the Ministry of Labour and Employment. Formed on 4 March 1952, it administers the mandatory provident fund, the Employees' Pension Scheme (EPS) and the Employees' Deposit Linked Insurance (EDLI) scheme. Any establishment with 20 or more employees must register with the fund, and workers earning up to ₹15,000 a month are covered mandatorily source.

EPF Scheme 2026: Effective 29 June 2026

The biggest recent development is that the EPF Scheme, 2026 came into force on 29 June 2026, replacing the seven‑decade‑old 1952 scheme and bringing provident fund rules in line with the Code on Social Security, 2020 source. For most members, day‑to‑day impact is minimal: the 12% employee and employer contribution rates (10% for certain specified establishments) and the ₹15,000 statutory wage ceiling remain unchanged. The new framework instead focuses on electronic filings, digital records, tighter governance for exempted PF trusts, and a provision letting the Central Government temporarily alter contribution rates in exceptional circumstances.

Interest Rate and Scale of Operations

For FY 2025‑26, EPF deposits earn 8.25% per annum — the same rate as the previous two financial years. Interest is computed each month on the running balance but credited to accounts once a year, and the rate is reviewed annually, so it can change in future years. As of 2026, the organisation serves more than 7 crore members through 147 offices source.

UAN and Digital Services

The Universal Account Number (UAN), launched on 1 October 2014, is a 12‑digit lifelong identifier that stays constant across jobs and clubs all your member IDs under one umbrella source. With an activated UAN linked to Aadhaar and a mobile number, members can transfer PF online when switching employers, file withdrawal claims through the EPFO portal or UMANG app, download passbooks, and complete KYC. Under the 2026 updates, withdrawal provisions have been consolidated into three broad categories — Essential Needs, Housing Needs and Special Circumstances — with EPFO targeting settlement of eligible online claims in as little as three working days.