India's EPF Rules Updated: Interest Stops After Retirement and New 2026 Scheme Launched

The Employees' Provident Fund Organisation (EPFO) has reminded retirees that EPF accounts become inoperative after a set period, ending interest accrual. For members who retire before age 55, interest continues until they turn 58; for those retiring at 55 or older, accounts stop earning interest three years after retirement (or at age 63 if retiring at 60). The balance remains payable but no longer generates interest.

On June 29, 2026, the Indian government notified the Employees' Provident Funds Scheme, 2026, replacing the 1952 scheme under the Code on Social Security. The new framework keeps the 12% employee‑and‑employer contribution rate with a statutory wage ceiling of INR 15,000 per month. Contributions above the ceiling are treated as voluntary, and employers may match them but are not required to. The scheme also introduces a minimum balance requirement for partial withdrawals and sets a minimum withdrawal amount of INR 1,000, with at least 25% of total contributions to remain in the account.