The Ministry of Labour & Employment has issued a Corrigendum to the Employees’ Provident Fund Scheme, 2026, which was originally notified vide G.S.R. 525(E) dated 29 June 2026 under the Code on Social Security, 2020.
While the corrigendum contains six corrections, only one has a significant compliance impact. The remaining five are drafting and typographical corrections intended to improve statutory accuracy.
The Most Important Amendment – Para 2(1)(f)(i)
The definition of “Excluded Employee” has now been substituted to read:
> “An employee other than the International Worker whose wage at the time he is otherwise entitled to become a member of the Fund exceeds the wage ceiling as prescribed under the Code.”
Compliance Impact
This amendment makes the legislative intent absolutely clear:
● International Workers (IWs) cannot be treated as Excluded Employees merely because their wages exceed the prescribed wage ceiling.
● PF membership for International Workers remains mandatory from the date of joining, irrespective of the salary drawn.
● High salary is no longer a ground for denying EPF coverage to an International Worker.
The only situations where an International Worker may remain outside compulsory membership continue to be those covered under Para 2(1)(f)(ii), namely:
● Employees qualifying as Detached Workers under an applicable Social Security Agreement (SSA); or
● The limited pre-01.10.2008 bilateral Comprehensive Economic Agreement (CEA) carve-out wherever applicable.
Why This Corrigendum Was Necessary
The language appearing in the original notification dated 29 June 2026 could have been interpreted to mean that high-paid expatriate employees were also Excluded Employees simply because their wages exceeded the statutory ceiling.
Such an interpretation would have conflicted with India’s long-standing framework governing International Workers and could also have created inconsistency with India’s Social Security Agreements, including the recently operationalised India–UK Double Contribution Convention.
The corrigendum removes this ambiguity and restores the legal position that has historically existed under the earlier EPF framework.
Other Corrections in the Corrigendum
Apart from the above substantive amendment, five drafting corrections have also been notified:
● Para 2(1)(b): “Board of Trustee” corrected to “Board of Trustees”
● Para 2(1)(m): Correct reference inserted as Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952)
● Para 2(1)(n): “Employees” corrected to “Employees’”
● Para 5: “Joint Secretary of the Government of India” corrected to “Joint Secretary to the Government of India”
● Para 8: References corrected to Provident Fund Act, 1925 (19 of 1925) and Provident Funds and instead of Provident Fund and
These corrections do not alter substantive compliance obligations.
One Important Issue Still Remains
Although the corrigendum resolves the issue relating to the definition of Excluded Employee, another important interpretational point continues to remain.
Para 18(3) still provides that contributions “in respect of a member” are subject to the prescribed wage ceiling and does not expressly carve out International Workers.
At present, Para 9(6) specifically mandates contribution on full wages only in respect of employees enjoying the benefit of detachment under a bilateral agreement (currently the India–UK Agreement reflected in the Schedule).
Under the earlier EPF Scheme, 1952, contribution on full salary for International Workers flowed from Paragraph 26A read with Paragraph 83. The corresponding mechanism does not expressly appear in the EPF Scheme, 2026.
Until EPFO issues a clarification, establishments employing expatriate employees would be well advised to continue contributing on full wages, consistent with the long-standing practice followed under the earlier Scheme.
Practical Takeaway for Employers
Employers having expatriate employees should immediately review:
● International Worker enrolment status;
● Whether any employee has been treated as an Excluded Employee solely because of higher salary;
● Contribution practices adopted after implementation of the EPF Scheme, 2026; and
● Whether existing processes remain aligned with the corrected statutory provisions.
The corrigendum provides welcome clarity on compulsory EPF membership for International Workers, but further guidance from EPFO on the contribution base for such employees would assist employers in ensuring complete compliance under the new Scheme.