Govt Notifies 12% PF Contribution Rate Under Social Security Code

Notification No. S.O. 3582(E); Dated: 01.07.2026

The Central Government has notified the contribution rate payable by employers and employees to the Provident Fund Scheme under the Code on Social Security, 2020. As per the notification, the contribution rate has been fixed at 12% for establishments covered under the Code, subject to specified exceptions.

The notification is deemed to have come into force on November 21, 2025.

1. Contribution Rate Fixed at 12%

The Central Government has prescribed that both employers and employees shall contribute at the rate of 12% to the Provident Fund Scheme.

This rate will apply to establishments covered under the Code on Social Security, 2020, except those specifically excluded or covered under a different rate.

2. Applicability to Covered Establishments

The notified contribution rate applies to establishments that fall within the scope of the Provident Fund provisions under the Code on Social Security, 2020.

Such establishments will be required to comply with the prescribed contribution obligations under the Scheme and the applicable provisions of the Code.

3. Exceptions for Specified Establishments

The notification provides exceptions for certain specified establishments.

These include establishments for which a resolution plan or repayment plan has been approved by the Adjudicating Authority established under the Insolvency and Bankruptcy Code, 2016.

4. Exclusion for Certain Specified Industries

The exception also applies to establishments operating in certain specified industries.

Such establishments may be governed by separate contribution provisions or rates, as prescribed under the applicable framework.

5. Deemed Effective Date

The notification is deemed to have come into force on November 21, 2025.

Accordingly, the notified contribution rate will be applicable from the said date, subject to the conditions and exceptions specified in the notification.

6. Objective of the Notification

The notification seeks to:

• Prescribe the applicable provident fund contribution rate under the Code on Social Security, 2020;
• Provide clarity to employers and employees regarding contribution obligations;
• Ensure continuity of provident fund contributions under the new social security framework;
• Identify specified establishments eligible for exception; and
• Support implementation of the Provident Fund Scheme under the Code.

7. Key Takeaway

The Central Government has notified a 12% contribution rate payable by both employers and employees to the Provident Fund Scheme under the Code on Social Security, 2020. The rate applies to covered establishments, except for specified establishments, such as those with an approved resolution or repayment plan under the IBC, and establishments operating in certain specified industries. The notification is deemed to have come into force on November 21, 2025.

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