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The Hindu Editorial • July 06, 2026 • Read Original

Old wine, new bottle: on the EPFO’s recent changes

EPFO’s recent changes signal continuity, not radical reform

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The Hindu Read Original
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Analysis of editorial from The Hindu newspaper on July 06, 2026

Old wine, new bottle: on the EPFO’s recent changes

EPFO’s recent changes signal continuity, not radical reform

EPFOEmployees' Provident FundCode on Social SecurityEmployees' Pension SchemeEmployees' Deposit Linked Insurance
Sentences
Sentence 1 of 17
English Original

The Union Labour and Employment Ministry’s notification of fresh rules for the Employees’ Provident Fund (EPF), Employees’ Pension Scheme (EPS), and Employees’ Deposit Linked Insurance (EDLI) is a procedural formality following the enforcement of the Code on Social Security, 2020, since November last year.

Simple Present Subject + Verb + Complement + Adjunct Main Clause Simple Sentence
Phrase Breakdown
Subject Who/What
The Union Labour and Employment Ministry’s notification of fresh rules for the Employees’ Provident Fund (EPF), Employees’ Pension Scheme (EPS), and Employees’ Deposit Linked Insurance (EDLI)
The official announcement of new regulations by the central ministry for the three key employee benefit schemes (EPF, EPS, and EDLI)
Verb What is happening
is
represents or equals
Complement Completes meaning
a procedural formality
an action done only to follow official rules or correct procedures, without introducing new changes
Adjunct Additional info
following the enforcement of the Code on Social Security, 2020, since November last year
coming after the new social security law from 2020 was officially put into action in November of last year
Context and Background
Code on Social Security, 2020

The Code on Social Security, 2020 is one of the four labour codes passed by the Indian Parliament to amalgamate and simplify 29 central labour laws. This specific code subsumes nine central laws related to social security, including the EPF Act, 1952 and the ESI Act, 1948, aiming to extend social security benefits to all workers, including those in the unorganized and gig sectors.

Sentence 2 of 17
English Original

Four months ago, the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) approved the implementation of social security measures framed as a sequel to the Code that subsumes nine laws, including the Employees’ State Insurance Act, 1948, and the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.

Simple Past Adjunct + Subject + Verb + Object Main Clause containing Relative Clause Complex Sentence
Phrase Breakdown
Adjunct Additional info
Four months ago
Four months before the current time
Subject Who/What
the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO)
The main decision-making body of the EPFO, which manages employees’ provident funds in India
Verb What is happening
approved
officially agreed to or passed
Object What receives action
the implementation of social security measures framed as a sequel to the Code that subsumes nine laws, including the Employees’ State Insurance Act, 1948, and the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
putting into practice the welfare rules created as a follow-up to the main Code, which merges nine older laws like the ESI Act of 1948 and the EPF Act of 1952
Context and Background
Central Board of Trustees (CBT) of EPFO

The Central Board of Trustees (CBT) is the tripartite governing body of the Employees’ Provident Fund Organisation (EPFO), chaired by the Union Minister of Labour and Employment. It has representatives from the central government, state governments, employers, and employees. The CBT is responsible for administering the funds and approving major policy changes before they are notified by the Ministry.

Sentence 3 of 17
English Original

With around eight crore subscribers, changes to the PF legal framework have wide implications for members and their families.

Simple Present Adjunct + Subject + Verb + Object Main Clause Simple Sentence
Phrase Breakdown
Adjunct Additional info
With around eight crore subscribers
Since there are about 80 million members enrolled in the fund
Subject Who/What
changes to the PF legal framework
modifications made to the laws governing the provident fund
Verb What is happening
have
contain or produce
Object What receives action
wide implications for members and their families
broad and serious effects on the workers and their dependents
Sentence 4 of 17
English Original

Viewed from this angle, the notification signalled continuity and sought to make the framework align with the Code.

Simple Past Adjunct + Subject + Verb + Object + Conjunction + Verb + Object Main Clause containing Compound Predicate Simple Sentence
Phrase Breakdown
Adjunct Additional info
Viewed from this angle
Looking at it from this perspective
Subject Who/What
the notification
the official announcement of the new rules
Verb What is happening
signalled
indicated or showed
Object What receives action
continuity
the state of remaining the same without any sudden or major changes
Verb What is happening
sought
tried or attempted
Object What receives action
to make the framework align with the Code
to ensure that the provident fund rules match and follow the guidelines of the main Social Security Code
Sentence 5 of 17
English Original

Even the feature of PF contributions being made voluntary in excess of the statutory wage ceiling of ₹15,000 is not new.

Simple Present Subject + Verb + Complement Main Clause Simple Sentence
Phrase Breakdown
Subject Who/What
Even the feature of PF contributions being made voluntary in excess of the statutory wage ceiling of ₹15,000
Even the rule that allows employees to contribute more than the legally required limit of 15,000 rupees a month by choice
Verb What is happening
is
is
Complement Completes meaning
not new
not a fresh concept; it has existed before
Sentence 6 of 17
English Original

The practice of allowing contributions up to 12% of the basic pay, regardless of the wage ceiling was the norm till the COVID-19 pandemic hit.

Simple Past Subject + Verb + Complement + Adjunct Main Clause containing Subordinate Clause Complex Sentence
Phrase Breakdown
Subject Who/What
The practice of allowing contributions up to 12% of the basic pay, regardless of the wage ceiling
The standard habit of letting workers deposit up to 12 percent of their base salary into PF, no matter how high their salary was
Verb What is happening
was
was
Complement Completes meaning
the norm
the usual standard or expected behavior
Adjunct Additional info
till the COVID-19 pandemic hit
until the global coronavirus outbreak began to affect the country
Sentence 7 of 17
English Original

It was only then that many establishments, while experiencing the shortage of funds, had begun limiting their contributions to the wage ceiling.

Past Perfect Adjunct + Subject + Adjunct + Verb + Object Main Clause containing Subordinate Clause Complex Sentence
Phrase Breakdown
Adjunct Additional info
It was only then that
It was only at that specific time (during the pandemic)
Subject Who/What
many establishments
many companies, businesses, or employers
Adjunct Additional info
while experiencing the shortage of funds
at the time when they were running low on money
Verb What is happening
had begun
started
Object What receives action
limiting their contributions to the wage ceiling
restricting the amount they paid for their workers’ PF to the official salary limit (15,000 rupees), instead of paying more
Sentence 8 of 17
English Original

However, pensioners and members had hoped that the notification would revise the minimum monthly pension of ₹1,000 and the monthly wage ceiling for contribution to the PF beyond ₹15,000, both of which were determined 12 years ago.

Past Perfect Adjunct + Subject + Verb + Object Main Clause containing Noun Clause and Relative Clause Complex Sentence
Phrase Breakdown
Adjunct Additional info
However
But, on the other hand
Subject Who/What
pensioners and members
retired people receiving pension and active contributors of the provident fund
Verb What is happening
had hoped
wished or expected in the past
Object What receives action
that the notification would revise the minimum monthly pension of ₹1,000 and the monthly wage ceiling for contribution to the PF beyond ₹15,000, both of which were determined 12 years ago
that the new rules would increase the lowest monthly pension from 1,000 rupees and raise the salary limit for PF deposits from 15,000 rupees, both of which have not changed since 2014
Context and Background
2014 EPS Amendments and Wage Ceiling

On September 1, 2014, the central government revised the statutory wage ceiling for mandatory EPF contribution from ₹6,500 to ₹15,000 per month. Simultaneously, a minimum monthly pension of ₹1,000 was introduced under the Employees’ Pension Scheme (EPS), 1995. Despite inflation and rising living costs over the past 12 years, these thresholds have remained unchanged, prompting sustained demands for revision from labor unions and pensioners.

Sentence 9 of 17
English Original

But they have been left disappointed.

Present Perfect Passive Adjunct + Subject + Verb + Complement Main Clause Simple Sentence
Phrase Breakdown
Adjunct Additional info
But
However
Subject Who/What
they
the pensioners and members
Verb What is happening
have been left
remain or are placed in a state of
Complement Completes meaning
disappointed
feeling sad or let down because their hopes were not met
Sentence 10 of 17
English Original

According to the EPFO’s 2024-25 annual report, about 36.8 lakh of its 81.5 lakh pensioners receive a monthly pension of ₹1,000 or less.

Simple Present Adjunct + Subject + Verb + Object Main Clause Simple Sentence
Phrase Breakdown
Adjunct Additional info
According to the EPFO’s 2024-25 annual report
Based on the figures published in the official yearly report of the EPFO for the year 2024-25
Subject Who/What
about 36.8 lakh of its 81.5 lakh pensioners
around 3.68 million out of the total 8.15 million retired members
Verb What is happening
receive
get or are paid
Object What receives action
a monthly pension of ₹1,000 or less
a regular retirement sum of 1,000 rupees or an even smaller amount each month
Sentence 11 of 17
English Original

Yet, the government has taken no decision on either issue despite repeated demands from pensioners and other stakeholders.

Present Perfect Adjunct + Subject + Verb + Object + Adjunct Main Clause Simple Sentence
Phrase Breakdown
Adjunct Additional info
Yet
Even so; despite this fact
Subject Who/What
the government
the ruling authorities of the country
Verb What is happening
has taken
has made (or has not made, in combination with ‘no’)
Object What receives action
no decision on either issue
not a single choice or ruling about raising the pension or the wage ceiling
Adjunct Additional info
despite repeated demands from pensioners and other stakeholders
even though retired workers and other affected groups have asked for this many times
Sentence 12 of 17
English Original

Even if financial implications are a concern, the government’s grant-in-aid for the minimum pension, benefiting about 20.6 lakh pensioners, is only around ₹1,000 crore annually.

Simple Present Adjunct + Subject + Verb + Complement + Adjunct Main Clause containing Subordinate Clause Complex Sentence
Phrase Breakdown
Adjunct Additional info
Even if financial implications are a concern
Even if the money-related effects or costs are a worrying matter
Subject Who/What
the government’s grant-in-aid for the minimum pension, benefiting about 20.6 lakh pensioners
the financial assistance given by the central government to support the lowest pension level, which helps about 2.06 million retired workers
Verb What is happening
is
is
Complement Completes meaning
only around ₹1,000 crore
no more than approximately 10 billion rupees
Adjunct Additional info
annually
every year
Sentence 13 of 17
English Original

Of the government’s outlay of ₹11,000-odd crore towards the EPS for the current year, most of its provision goes for the component of its contribution at 1.16% of the monthly pay (limited to the wage ceiling of ₹15,000) of EPS members.

Simple Present Adjunct + Subject + Verb + Adjunct Main Clause Simple Sentence
Phrase Breakdown
Adjunct Additional info
Of the government’s outlay of ₹11,000-odd crore towards the EPS for the current year
Out of the government’s total planned spending of around 11,000 crore rupees on the Employees’ Pension Scheme this year
Subject Who/What
most of its provision
the largest part of the allocated money
Verb What is happening
goes
is spent or utilized
Adjunct Additional info
for the component of its contribution at 1.16% of the monthly pay (limited to the wage ceiling of ₹15,000) of EPS members
to pay the government’s share of 1.16 percent of each worker’s monthly salary (calculated only up to the 15,000 rupees ceiling)
Sentence 14 of 17
English Original

The government should restore the applicability of the EPS to all workers, regardless of pay.

Simple Present (with Modal Verb) Subject + Verb + Object Main Clause Simple Sentence
Phrase Breakdown
Subject Who/What
The government
The state authorities
Verb What is happening
should restore
ought to bring back or re-establish
Object What receives action
the applicability of the EPS to all workers, regardless of pay
making the pension scheme cover every employee, no matter how much money they earn
Sentence 15 of 17
English Original

If the government feels that the EPFO is getting overburdened with its work, it can formulate a tailored scheme with the Pension Fund Regulatory and Development Authority.

Simple Present (with Modal Verb) Adjunct + Subject + Verb + Object + Adjunct Main Clause containing Conditional Adverbial Clause and Noun Clause Complex Sentence
Phrase Breakdown
Adjunct Additional info
If the government feels that the EPFO is getting overburdened with its work
In case the ruling authorities think the EPFO has too much work to handle properly
Subject Who/What
it
the government
Verb What is happening
can formulate
is able to design or create
Object What receives action
a tailored scheme
a customized plan designed for a specific purpose
Adjunct Additional info
with the Pension Fund Regulatory and Development Authority
in cooperation with the PFRDA, which is India’s pension sector regulator
Sentence 16 of 17
English Original

Efforts to expedite and simplify claim settlements should continue.

Simple Present (with Modal Verb) Subject + Verb Main Clause Simple Sentence
Phrase Breakdown
Subject Who/What
Efforts to expedite and simplify claim settlements
Attempts made to make the processing of PF withdrawal or pension applications faster and less complicated
Verb What is happening
should continue
ought to keep going without stopping
Sentence 17 of 17
English Original

The government must remember that substantive EPFO decisions affect crores of employees.

Simple Present (with Modal Verb) Subject + Verb + Object Main Clause containing Noun Clause Complex Sentence
Phrase Breakdown
Subject Who/What
The government
The ruling state authorities
Verb What is happening
must remember
has to keep in mind or not forget
Object What receives action
that substantive EPFO decisions affect crores of employees
that major policy changes by the provident fund organization have an impact on tens of millions of workers
Sentence 1 of 17
Sentence 1 of 17
The Union Labour and Employment Ministry’s notification of fresh rules for the Employees’ Provident Fund (EPF), Employees’ Pension Scheme (EPS), and Employees’ Deposit Linked Insurance (EDLI) is a procedural formality following the enforcement of the Code on Social Security, 2020, since November last year.
Phrase Breakdown
Subject
The Union Labour and Employment Ministry’s notification of fresh rules for the Employees’ Provident Fund (EPF), Employees’ Pension Scheme (EPS), and Employees’ Deposit Linked Insurance (EDLI)
The official announcement of new regulations by the central ministry for the three key employee benefit schemes (EPF, EPS, and EDLI)
Verb
is
represents or equals
Complement
a procedural formality
an action done only to follow official rules or correct procedures, without introducing new changes
Adjunct
following the enforcement of the Code on Social Security, 2020, since November last year
coming after the new social security law from 2020 was officially put into action in November of last year
Sentence 2 of 17
Four months ago, the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) approved the implementation of social security measures framed as a sequel to the Code that subsumes nine laws, including the Employees’ State Insurance Act, 1948, and the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.
Phrase Breakdown
Adjunct
Four months ago
Four months before the current time
Subject
the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO)
The main decision-making body of the EPFO, which manages employees’ provident funds in India
Verb
approved
officially agreed to or passed
Object
the implementation of social security measures framed as a sequel to the Code that subsumes nine laws, including the Employees’ State Insurance Act, 1948, and the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
putting into practice the welfare rules created as a follow-up to the main Code, which merges nine older laws like the ESI Act of 1948 and the EPF Act of 1952
Sentence 3 of 17
With around eight crore subscribers, changes to the PF legal framework have wide implications for members and their families.
Phrase Breakdown
Adjunct
With around eight crore subscribers
Since there are about 80 million members enrolled in the fund
Subject
changes to the PF legal framework
modifications made to the laws governing the provident fund
Verb
have
contain or produce
Object
wide implications for members and their families
broad and serious effects on the workers and their dependents
Sentence 4 of 17
Viewed from this angle, the notification signalled continuity and sought to make the framework align with the Code.
Phrase Breakdown
Adjunct
Viewed from this angle
Looking at it from this perspective
Subject
the notification
the official announcement of the new rules
Verb
signalled
indicated or showed
Object
continuity
the state of remaining the same without any sudden or major changes
Verb
sought
tried or attempted
Object
to make the framework align with the Code
to ensure that the provident fund rules match and follow the guidelines of the main Social Security Code
Sentence 5 of 17
Even the feature of PF contributions being made voluntary in excess of the statutory wage ceiling of ₹15,000 is not new.
Phrase Breakdown
Subject
Even the feature of PF contributions being made voluntary in excess of the statutory wage ceiling of ₹15,000
Even the rule that allows employees to contribute more than the legally required limit of 15,000 rupees a month by choice
Verb
is
is
Complement
not new
not a fresh concept; it has existed before
Sentence 6 of 17
The practice of allowing contributions up to 12% of the basic pay, regardless of the wage ceiling was the norm till the COVID-19 pandemic hit.
Phrase Breakdown
Subject
The practice of allowing contributions up to 12% of the basic pay, regardless of the wage ceiling
The standard habit of letting workers deposit up to 12 percent of their base salary into PF, no matter how high their salary was
Verb
was
was
Complement
the norm
the usual standard or expected behavior
Adjunct
till the COVID-19 pandemic hit
until the global coronavirus outbreak began to affect the country
Sentence 7 of 17
It was only then that many establishments, while experiencing the shortage of funds, had begun limiting their contributions to the wage ceiling.
Phrase Breakdown
Adjunct
It was only then that
It was only at that specific time (during the pandemic)
Subject
many establishments
many companies, businesses, or employers
Adjunct
while experiencing the shortage of funds
at the time when they were running low on money
Verb
had begun
started
Object
limiting their contributions to the wage ceiling
restricting the amount they paid for their workers’ PF to the official salary limit (15,000 rupees), instead of paying more
Sentence 8 of 17
However, pensioners and members had hoped that the notification would revise the minimum monthly pension of ₹1,000 and the monthly wage ceiling for contribution to the PF beyond ₹15,000, both of which were determined 12 years ago.
Phrase Breakdown
Adjunct
However
But, on the other hand
Subject
pensioners and members
retired people receiving pension and active contributors of the provident fund
Verb
had hoped
wished or expected in the past
Object
that the notification would revise the minimum monthly pension of ₹1,000 and the monthly wage ceiling for contribution to the PF beyond ₹15,000, both of which were determined 12 years ago
that the new rules would increase the lowest monthly pension from 1,000 rupees and raise the salary limit for PF deposits from 15,000 rupees, both of which have not changed since 2014
Sentence 9 of 17
But they have been left disappointed.
Phrase Breakdown
Adjunct
But
However
Subject
they
the pensioners and members
Verb
have been left
remain or are placed in a state of
Complement
disappointed
feeling sad or let down because their hopes were not met
Sentence 10 of 17
According to the EPFO’s 2024-25 annual report, about 36.8 lakh of its 81.5 lakh pensioners receive a monthly pension of ₹1,000 or less.
Phrase Breakdown
Adjunct
According to the EPFO’s 2024-25 annual report
Based on the figures published in the official yearly report of the EPFO for the year 2024-25
Subject
about 36.8 lakh of its 81.5 lakh pensioners
around 3.68 million out of the total 8.15 million retired members
Verb
receive
get or are paid
Object
a monthly pension of ₹1,000 or less
a regular retirement sum of 1,000 rupees or an even smaller amount each month
Sentence 11 of 17
Yet, the government has taken no decision on either issue despite repeated demands from pensioners and other stakeholders.
Phrase Breakdown
Adjunct
Yet
Even so; despite this fact
Subject
the government
the ruling authorities of the country
Verb
has taken
has made (or has not made, in combination with ‘no’)
Object
no decision on either issue
not a single choice or ruling about raising the pension or the wage ceiling
Adjunct
despite repeated demands from pensioners and other stakeholders
even though retired workers and other affected groups have asked for this many times
Sentence 12 of 17
Even if financial implications are a concern, the government’s grant-in-aid for the minimum pension, benefiting about 20.6 lakh pensioners, is only around ₹1,000 crore annually.
Phrase Breakdown
Adjunct
Even if financial implications are a concern
Even if the money-related effects or costs are a worrying matter
Subject
the government’s grant-in-aid for the minimum pension, benefiting about 20.6 lakh pensioners
the financial assistance given by the central government to support the lowest pension level, which helps about 2.06 million retired workers
Verb
is
is
Complement
only around ₹1,000 crore
no more than approximately 10 billion rupees
Adjunct
annually
every year
Sentence 13 of 17
Of the government’s outlay of ₹11,000-odd crore towards the EPS for the current year, most of its provision goes for the component of its contribution at 1.16% of the monthly pay (limited to the wage ceiling of ₹15,000) of EPS members.
Phrase Breakdown
Adjunct
Of the government’s outlay of ₹11,000-odd crore towards the EPS for the current year
Out of the government’s total planned spending of around 11,000 crore rupees on the Employees’ Pension Scheme this year
Subject
most of its provision
the largest part of the allocated money
Verb
goes
is spent or utilized
Adjunct
for the component of its contribution at 1.16% of the monthly pay (limited to the wage ceiling of ₹15,000) of EPS members
to pay the government’s share of 1.16 percent of each worker’s monthly salary (calculated only up to the 15,000 rupees ceiling)
Sentence 14 of 17
The government should restore the applicability of the EPS to all workers, regardless of pay.
Phrase Breakdown
Subject
The government
The state authorities
Verb
should restore
ought to bring back or re-establish
Object
the applicability of the EPS to all workers, regardless of pay
making the pension scheme cover every employee, no matter how much money they earn
Sentence 15 of 17
If the government feels that the EPFO is getting overburdened with its work, it can formulate a tailored scheme with the Pension Fund Regulatory and Development Authority.
Phrase Breakdown
Adjunct
If the government feels that the EPFO is getting overburdened with its work
In case the ruling authorities think the EPFO has too much work to handle properly
Subject
it
the government
Verb
can formulate
is able to design or create
Object
a tailored scheme
a customized plan designed for a specific purpose
Adjunct
with the Pension Fund Regulatory and Development Authority
in cooperation with the PFRDA, which is India’s pension sector regulator
Sentence 16 of 17
Efforts to expedite and simplify claim settlements should continue.
Phrase Breakdown
Subject
Efforts to expedite and simplify claim settlements
Attempts made to make the processing of PF withdrawal or pension applications faster and less complicated
Verb
should continue
ought to keep going without stopping
Sentence 17 of 17
The government must remember that substantive EPFO decisions affect crores of employees.
Phrase Breakdown
Subject
The government
The ruling state authorities
Verb
must remember
has to keep in mind or not forget
Object
that substantive EPFO decisions affect crores of employees
that major policy changes by the provident fund organization have an impact on tens of millions of workers

Reading Comprehension

Practice questions based on this editorial

Reading Comprehension - EPFO Recent Changes

Practice reading comprehension questions based on the editorial about EPFO's recent changes, pension schemes, and wage ceiling issues.

5 Questions Passing: 70%

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