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.

Sentence Breakdown

Part 1

The Union Labour and Employment Ministry’s of 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)

Part 2

represents or equals

Part 3

an action done only to follow official rules or correct procedures, without introducing new changes

Part 4

following the of the , 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.

Sentence Breakdown

Part 1

Four months ago

Four months before the current time

Part 2

the (CBT) of the Employees’ Provident Fund Organisation ()

The main decision-making body of the EPFO, which manages employees’ provident funds in India

Part 3

approved

officially agreed to or passed

Part 4

the of social security measures framed as a to the Code that 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.

Sentence Breakdown

Part 1

With around eight crore

Since there are about 80 million members enrolled in the fund

Part 2

changes to the PF

modifications made to the laws governing the provident fund

Part 3

have

contain or produce

Part 4

wide 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.

Sentence Breakdown

Part 1

Viewed from this angle

Looking at it from this perspective

Part 2

the notification

the official announcement of the new rules

Part 3

signalled

indicated or showed

Part 4

the state of remaining the same without any sudden or major changes

Part 5

sought

tried or attempted

Part 6

to make the framework 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.

Sentence Breakdown

Part 1

Even the feature of PF contributions being made in excess of the 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

Part 2

Part 3

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.

Sentence Breakdown

Part 1

The practice of allowing contributions up to 12% of the , 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

Part 2

was

Part 3

the

the usual standard or expected behavior

Part 4

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.

Sentence Breakdown

Part 1

It was only then that

It was only at that specific time (during the pandemic)

Part 2

many

many companies, businesses, or employers

Part 3

while experiencing the of funds

at the time when they were running low on money

Part 4

had begun

started

Part 5

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.

Sentence Breakdown

Part 1

However

But, on the other hand

Part 2

and members

retired people receiving pension and active contributors of the provident fund

Part 3

had hoped

wished or expected in the past

Part 4

that the notification would 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.

Sentence Breakdown

Part 1

But

However

Part 2

they

the pensioners and members

Part 3

have been left

remain or are placed in a state of

Part 4

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.

Sentence Breakdown

Part 1

According to the EPFO’s 2024-25

Based on the figures published in the official yearly report of the EPFO for the year 2024-25

Part 2

about 36.8 lakh of its 81.5 lakh pensioners

around 3.68 million out of the total 8.15 million retired members

Part 3

receive

get or are paid

Part 4

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.

Sentence Breakdown

Part 1

Yet

Even so; despite this fact

Part 2

the government

the ruling authorities of the country

Part 3

has taken

has made (or has not made, in combination with ‘no’)

Part 4

no decision on either issue

not a single choice or ruling about raising the pension or the wage ceiling

Part 5

despite repeated from pensioners and other

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.

Sentence Breakdown

Part 1

Even if financial are a concern

Even if the money-related effects or costs are a worrying matter

Part 2

the government’s 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

Part 3

Part 4

only around ₹1,000 crore

no more than approximately 10 billion rupees

Part 5

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.

Sentence Breakdown

Part 1

Of the government’s of ₹ 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

Part 2

most of its

the largest part of the allocated money

Part 3

goes

is spent or utilized

Part 4

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.

Sentence Breakdown

Part 1

The government

The state authorities

Part 2

should

ought to bring back or re-establish

Part 3

the 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.

Sentence Breakdown

Part 1

If the government feels that the EPFO is getting with its work

In case the ruling authorities think the EPFO has too much work to handle properly

Part 2

the government

Part 3

can

is able to design or create

Part 4

a scheme

a customized plan designed for a specific purpose

Part 5

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.

Sentence Breakdown

Part 1

Efforts to and simplify

Attempts made to make the processing of PF withdrawal or pension applications faster and less complicated

Part 2

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.

Sentence Breakdown

Part 1

The government

The ruling state authorities

Part 2

must remember

has to keep in mind or not forget

Part 3

that EPFO decisions of employees

that major policy changes by the provident fund organization have an impact on tens of millions of workers

Sentence 1 of 17

Sentences Breakdown

Editorial Summary

5-Point Summary

1 The Union Labour and Employment Ministry has notified fresh rules for the EPF, EPS, and EDLI under the Code on Social Security, 2020.
2 The Central Board of Trustees of the EPFO approved these measures, which combine nine older laws into a single social security code.
3 With about eight crore subscribers, changes to the provident fund framework have huge implications for millions of Indian workers and their families.
4 Despite hopes for reforms like raising the minimum pension of 1,000 rupees and the wage ceiling of 15,000 rupees, the notification only maintained the status quo.
5 The government has ignored calls to expand the pension scheme to all workers, even though the financial cost of doing so is relatively small.

Tone of the Editorial

Critical

Why this tone?

The editorial is critical of the government’s decision to maintain the status quo instead of raising the 12 year old wage ceiling of 15,000 rupees and the minimum monthly pension of 1,000 rupees, leaving millions of pensioners disappointed.

Sentence 1 of 17

Sentence Breakdown

Part 1

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)

Part 2

represents or equals

Part 3

a procedural formality

an action done only to follow official rules or correct procedures, without introducing new changes

Part 4

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

Sentence Breakdown

Part 1

Four months ago

Four months before the current time

Part 2

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

Part 3

approved

officially agreed to or passed

Part 4

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.

Sentence Breakdown

Part 1

With around eight crore subscribers

Since there are about 80 million members enrolled in the fund

Part 2

changes to the PF legal framework

modifications made to the laws governing the provident fund

Part 3

have

contain or produce

Part 4

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.

Sentence Breakdown

Part 1

Viewed from this angle

Looking at it from this perspective

Part 2

the notification

the official announcement of the new rules

Part 3

signalled

indicated or showed

Part 4

continuity

the state of remaining the same without any sudden or major changes

Part 5

sought

tried or attempted

Part 6

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.

Sentence Breakdown

Part 1

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

Part 2

Part 3

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.

Sentence Breakdown

Part 1

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

Part 2

was

Part 3

the norm

the usual standard or expected behavior

Part 4

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.

Sentence Breakdown

Part 1

It was only then that

It was only at that specific time (during the pandemic)

Part 2

many establishments

many companies, businesses, or employers

Part 3

while experiencing the shortage of funds

at the time when they were running low on money

Part 4

had begun

started

Part 5

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

Sentence Breakdown

Part 1

However

But, on the other hand

Part 2

pensioners and members

retired people receiving pension and active contributors of the provident fund

Part 3

had hoped

wished or expected in the past

Part 4

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.

Sentence Breakdown

Part 1

But

However

Part 2

they

the pensioners and members

Part 3

have been left

remain or are placed in a state of

Part 4

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.

Sentence Breakdown

Part 1

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

Part 2

about 36.8 lakh of its 81.5 lakh pensioners

around 3.68 million out of the total 8.15 million retired members

Part 3

receive

get or are paid

Part 4

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.

Sentence Breakdown

Part 1

Yet

Even so; despite this fact

Part 2

the government

the ruling authorities of the country

Part 3

has taken

has made (or has not made, in combination with ‘no’)

Part 4

no decision on either issue

not a single choice or ruling about raising the pension or the wage ceiling

Part 5

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.

Sentence Breakdown

Part 1

Even if financial implications are a concern

Even if the money-related effects or costs are a worrying matter

Part 2

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

Part 3

Part 4

only around ₹1,000 crore

no more than approximately 10 billion rupees

Part 5

annually

every year

Sentence 13 of 17

Sentence Breakdown

Part 1

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

Part 2

most of its provision

the largest part of the allocated money

Part 3

goes

is spent or utilized

Part 4

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.

Sentence Breakdown

Part 1

The government

The state authorities

Part 2

should restore

ought to bring back or re-establish

Part 3

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.

Sentence Breakdown

Part 1

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

Part 2

the government

Part 3

can formulate

is able to design or create

Part 4

a tailored scheme

a customized plan designed for a specific purpose

Part 5

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.

Sentence Breakdown

Part 1

Efforts to expedite and simplify claim settlements

Attempts made to make the processing of PF withdrawal or pension applications faster and less complicated

Part 2

should continue

ought to keep going without stopping

Sentence 17 of 17

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

Sentence Breakdown

Part 1

The government

The ruling state authorities

Part 2

must remember

has to keep in mind or not forget

Part 3

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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