India’s new labour reforms have officially come into force, but one major question continues to puzzle employees and employers: Why is the Employees’ Provident Fund (EPF) Act of 1952 still operational when the Social Security Code (SSC) has already been implemented?

As it turns out, although the government has notified the Social Security Code, a crucial clause that would repeal the EPF Act has not yet been enforced. This is why the decades-old EPF Act remains valid.

According to Section 164(3) of the Code on Social Security (CSS), the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 is meant to be repealed once the new code becomes fully operational.

However, government officials have confirmed that this specific clause has not been notified yet. Until the notification is issued, the EPF Act continues unchanged.

A source familiar with the matter told Moneycontrol that while the original plan was to merge EPF provisions into the new labour code at the time of implementation, the government chose not to invoke that clause for now.

Another official added that the labour ministry is still in the process of drafting and finalizing the rules and guidelines needed to make the Social Security Code fully functional.

Officials working on the transition say that implementing the CSS involves preparing rules across nine separate social security laws, including the EPF Act. Finalizing these rules could take several more weeks.

Until then, the three major social security schemes governed under the EPF Act will continue as usual:

• Employees’ Provident Fund Scheme (EPF), 1952




• Employees’ Pension Scheme (EPS), 1995




• Employees’ Deposit Linked Insurance Scheme (EDLI), 1976

These schemes collectively ensure retirement savings, pension benefits, and insurance coverage for millions of salaried employees.

EPF is a mandatory retirement savings programme in which both the employer and employee contribute 12% of the employee’s basic salary each month. This fund provides long-term financial security and earns annual interest.

EPS provides a monthly pension to employees after retirement. A portion of the employer’s contribution to EPF is diverted toward EPS every month.

Under EDLI, families of EPF members receive insurance coverage in case of the employee’s death while in service.

Despite the introduction of CSS, all these schemes remain legally valid because the repealing clause is pending notification.

The government formally notified the Social Security Code on 21 November, thereby repealing eight existing laws related to social security. However, experts point out that one of the largest segments of the notified code relates directly to provident fund administration, pension rules, and post-retirement benefits.

The notified sections empower the central government to introduce new PF, pension, widow/widower pension, and retirement schemes by issuing necessary notifications under the CSS framework.

Legal experts say more clarity will emerge once the government issues the next round of notifications.

Sonakshi Das, Partner at JSA Advocates & Solicitors, noted that a significant portion of the Social Security Code's practical implementation depends on notifications that are still pending.

She added that employees and employers must stay alert to new government circulars, especially those related to:

• Revised PF schemes




• Contribution rules




• Operational procedures




• New pension frameworks

Until these notifications are released, the EPF Act will continue to operate alongside the newly notified Social Security Code.