EPFO Compliance Guide
Last updated: August 2026 · For Indian businesses · Reflects the EPF Scheme, 2026
Written by Oscar Jamuar, Founder, Shiftelio
What is EPFO?
The Employees' Provident Fund Organisation (EPFO)is a statutory body under the Ministry of Labour & Employment, Government of India. It administers the Employees' Provident Fund (EPF), Employees' Pension Scheme (EPS), and Employees' Deposit Linked Insurance (EDLI).
Since 29 June 2026 these three run under the Code on Social Security, 2020, through the EPF Scheme 2026, EPS Scheme 2026 and EDLI Scheme 2026, framed under Section 15 of the Code, which supersede the 1952, 1995 and 1976 schemes respectively. If you are reading older guidance that cites the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, that is the framework these schemes replaced.
EPF is a mandatory retirement savings scheme that requires both the employer and employee to contribute a portion of the employee's wages every month. The accumulated corpus is available to the employee at retirement, resignation, or in specific emergencies.
What Changed on 29 June 2026
The headline numbers did not move. The rates are still 12% and 13%, and the wage ceiling is still ₹15,000 a month. What changed is the base those percentages apply to, and some of the paperwork.
Contributions are on “wages”, not “basic wages”
The old scheme used Basic + DA. Section 2(88) of the Code on Social Security defines wages with a 50% rule: allowances excluded from the definition cannot make up more than half of total pay, and anything beyond that half is added back and treated as wages. If your salary structure leans heavily on allowances, your EPF base goes up, and so does your contribution.
Form V, within 15 days
A consolidated return listing each employee’s Aadhaar, PAN, UAN, gross wages and EPF wages must be filed within 15 days of the scheme applying to your establishment.
Statutory and voluntary contributions must be shown separately
Anything contributed above the ₹15,000 ceiling now has to be separately identifiable in your filings, not merged into one figure.
Voluntary contributions can be stopped by either side
Previously stopping them needed a joint option. Now either the employer or the employee can discontinue them unilaterally, and employer matching on voluntary contributions is expressly optional.
Membership carries over. Everyone who was a member under the 1952 scheme stays a member. You do not re-enrol anyone.
Who Must Register?
Coverage is set by Section 1(4) of the Code read with the First Schedule, which is what decides whether Chapter III (Employees’ Provident Fund) applies to you at all. Every establishment that meets any one of these conditions is required to register with EPFO:
- Has 20 or more employees at any point during the year
- Is a factory engaged in any industry specified in the First Schedule to the Code with 20 or more workers
- A business with fewer than 20 employees may come in voluntarily under Section 1(5), which needs the employer and a majority of employees to agree. It is not the employer’s decision alone.
Note: Once you cross 20 employees, you must register within 30 days. Penalties apply for late registration.
Contribution Rates (FY 2026–27)
Section 16 of the Code sets the funds up and puts the employer’s contribution at 10% of wages, with power to notify a higher figure. 12% is that notified figure, so do not be thrown if the bare act reads 10%. Contributions are calculated on wages as defined by Section 2(88), using the 50% rule described above, capped at ₹15,000/month for mandatory purposes. Contributing on more than ₹15,000 is allowed but voluntary, and the employer does not have to match it.
| Component | Employer | Employee |
|---|---|---|
| EPF (Provident Fund) | 3.67% | 12% |
| EPS (Pension Scheme) | 8.33% | — |
| EDLI (Insurance) | 0.50% | — |
| Admin / Inspection | 0.50% | — |
| Total | 13% | 12% |
* EPS contribution is capped at ₹1,250/month (8.33% of ₹15,000). Employer EPF = 12% − 8.33% = 3.67%.
If You Use Contract Labour
Section 17 of the Code covers employees engaged through a contractor. You, as the principal employer, remain liable for the contribution, and you may recover it from the contractor, either by deducting it from what you owe them or as a debt.
The contractor may in turn deduct the employee’s share from that employee’s wages. What a contractor may never do, whatever the contract says, is push the employer’s share onto the worker. Section 17(3) makes that unenforceable.
Key Compliance Steps
Register your establishment
Apply at the Unified Shram Suvidha Portal (shramsuvidha.gov.in). You'll receive an Establishment Code (ECR number).
Generate UAN for each employee
Every employee gets a Universal Account Number (UAN), a 12-digit permanent identifier that stays with them across jobs.
Collect KYC documents
Link Aadhaar, PAN, and bank account to each employee's UAN via the Employer portal.
Calculate and deduct contributions monthly
Deduct 12% from employee salary and add employer's 13% share. Total remittance = 25% of EPF-applicable wages.
File Form V within 15 days
The consolidated return introduced by the EPF Scheme, 2026, covering Aadhaar, PAN, UAN, gross wages and EPF wages for every employee. Due within 15 days of the scheme applying to you.
File ECR by the 15th of each month
Upload the Electronic Challan cum Return (ECR) file on the EPFO member portal and make the payment.
File annual returns
Annual returns (Form 3A and 6A) must be filed before 30th April each year.
Common Penalties
| Violation | Penalty |
|---|---|
| Late payment of contributions | 12–18% p.a. interest + damages up to 25% |
| Non-registration after threshold | ₹5,000–₹15,000 fine + prosecution |
| Non-filing of ECR | Damages up to 25% of arrears |
| False information | Up to 1 year imprisonment |
How Shiftelio Helps You Stay Compliant
Shiftelio is built around the Indian payroll and attendance reality. Here is what it does out of the box:
Accurate employee headcount tracking
Shiftelio tracks every active employee with join date and status. You will always know your live headcount, so you know exactly when you cross the 20-employee threshold.
Payroll data ready for ECR filing
Monthly payroll reports include basic salary, DA, and gross pay broken down per employee, which are the exact figures you need to calculate EPF contributions and generate the ECR file.
Attendance-based salary calculation
Shiftelio calculates pay based on actual attendance records (GPS clock-in/out). No overpayment, no under-reporting. Contributions stay accurate automatically.
Employee records and onboarding documents
Store Aadhaar, PAN, and bank details per employee through the onboarding module. All KYC data needed for UAN linking is in one place.
Export-ready reports
Download monthly payroll summaries in CSV/PDF to feed directly into your ECR upload or share with your CA for filing.
Check It Yourself
Every section number on this page refers to the Code on Social Security, 2020. Read them in the bare act rather than taking our word for it, especially before you change anyone’s pay.
Disclaimer
This guide is for informational purposes only and does not constitute legal or financial advice. EPFO rules and contribution rates may change, so always verify with the official EPFO portal at epfindia.gov.in or consult a qualified CA / labour law consultant for your specific situation.
The 29 June 2026 changes described here are drawn from the Ministry of Labour & Employment notifications under the Code on Social Security, 2020, as reported by SCC Online, LiveLaw and BDO. Where this guide and the official notification differ, the notification governs.
Ready to simplify compliance?
Shiftelio keeps your attendance, payroll, and employee records in sync, so EPFO filing is never a scramble.
Start Free Trial