EPF Act Remains Operational Despite Being Repealed in New Labour Laws – Here’s Why?

The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act) continues to remain in force even though India’s new labour codes have officially kicked in. This has raised questions among employers and workers, especially because the Code on Social Security (CSS) clearly states under Section 164(3) that the EPF Act stands repealed.

However, this specific repeal clause has not yet been notified, meaning the EPF Act legally continues to operate.

This is a crucial point for millions of employees and employers who depend on the EPF, EPS and EDLI schemes.

Why the EPF Act Is Still Operational?

According to government sources, the Ministry of Labour has not notified the clause that would repeal the EPF Act.

“The clause for EPF Act hasn’t been notified under the social security code,” a source told Moneycontrol, clarifying that while the intention was to merge the EPF Act into the new labour code, the transition is still incomplete.

Another official explained that the rules and guidelines required to operationalise the Code on Social Security are still being drafted. These rules must align with nine existing social security laws, including the EPF Act, and finalising them may take several months.

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EPF, EPS and EDLI Schemes Continue as Before

The EPF Act provides statutory backing for three major social-security schemes:

1. Employees’ Provident Fund (EPF) Scheme, 1952

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

2. Employees’ Pension Scheme (EPS), 1995

A post-retirement pension scheme that uses a portion of the employer’s EPF contribution.

3. Employees’ Deposit Linked Insurance (EDLI) Scheme, 1976

An insurance scheme offering financial cover to EPF members.

These schemes remain fully operational because the legal structure supporting them (the EPF Act) has not yet been repealed.

What Has Changed Under the New Social Security Code

On November 21, the government notified major provisions of the Code on Social Security, which formally repealed eight laws, including:

• Employees’ Compensation Act, 1923

• Employees’ State Insurance Act, 1948

• Maternity Benefit Act, 1961

• Payment of Gratuity Act, 1972

• Building and Other Construction Workers’ Welfare Cess Act, 1996
  …and others.

Experts note that several provisions related to the provident fund under the new Code have already been notified. These include:

• Centre’s power to frame PF schemes for pensions, superannuation, and survivor benefits

• Rules on PF contributions for employees and contractors

• Mechanisms for transferring provident fund accounts

However, these provisions require additional notifications before they can become operational. Until then, employers must continue following the existing EPF Act.

Experts Warn of Upcoming Compliance Challenges

Legal and labour experts say the next phase will be more complex for employers.

Sonakshi Das, Partner at JSA Advocates, said businesses must closely watch for upcoming notifications that will define new social security schemes replacing the current EPF mechanisms.

Adil Ladha, Partner at Saraf & Partners, pointed out that the biggest challenge will be the transition to the new “expanded wages” definition, which could increase PF contributions and force companies to restructure compensation packages.

He explained that organisations will need a phased compliance plan, with HR, payroll, finance, tax and legal teams running both the old and new systems in parallel until the government finalises all rules.

Conclusion

The EPF Act technically stands repealed under the Code on Social Security, but because the government has not notified the repeal clause, the Act—and all related social security schemes—remain in force.

Until further notifications are issued, employees and employers must continue complying with the existing EPF rules.

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