EPF Act Still Active Despite New Labour Code Repeal: Here’s Why the Change Isn’t Implemented Yet

The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act), is still in force even though the new Code on Social Security (CSS) includes a clause to repeal it. The government has notified most parts of the new labour code, but Section 164(3), the clause that repeals the EPF Act has not been notified yet.

Officials familiar with the matter said the government originally planned to merge the EPF Act into the new Social Security Code, but the process is still ongoing.

Rules and Guidelines Still Being Finalised

According to government sources, the labour ministry is currently preparing detailed rules needed to implement the new Social Security Code. These rules will cover 9 social security laws, including the EPF Act. Finalising these guidelines may take a few more months.

Until then, the EPF Act and all its existing schemes will continue to operate as usual.

What the EPF Schemes Include

EPF Scheme (1952)

A retirement savings scheme where both employer and employee contribute 12% of monthly wages to the EPFO.

EPS Scheme (1995)

Provides pension benefits after retirement. A part of the employer’s EPF contribution goes into this scheme.

EDLI Scheme (1976)

Offers insurance coverage to EPF members.

These 3 schemes are currently backed by the EPF Act, which is why the act remains functional.

What the Social Security Code Has Already Changed

8 Old Laws Repealed

On November 21, the government notified the Social Security Code, officially repealing the following 8 laws:

• Employee’s Compensation Act (1923)
• Employees' State Insurance Act (1948)
• Employment Exchanges Act (1959)
• Maternity Benefit Act (1961)
• Payment of Gratuity Act (1972)
• Cine-Workers Welfare Fund Act (1981)
• Building and Other Construction Workers’ Welfare Cess Act (1996)
• Unorganised Workers Social Security Act (2008)

Read More, EPF Withdrawal: When Is It Tax-Free and When Is It Taxed? 

Conclusion

Even though the Social Security Code technically repeals the EPF Act, the repeal is not yet active because the government hasn’t notified the relevant clause. Until new rules and schemes are released, the EPF Act and its associated benefits, EPF, EPS, and EDLI will continue without any change. Employers and employees should monitor upcoming government notifications for the next steps.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.