Major CBT Decisions, EPF Reforms, ESIC Compliance & Pension Updates

Published by Atwork India Consultancy Pvt. Ltd.

Atwork India Consultancy Pvt. Ltd. brings you the latest developments in labour laws, EPFO, ESIC, payroll, and statutory compliance to help organizations stay informed and compliant with evolving regulations.

Following the 236th Central Board of Trustees (CBT) Meeting held on 25 July 2026, several important policy and operational updates have been introduced by the Employees' Provident Fund Organisation (EPFO) and the Ministry of Labour & Employment. These changes are expected to simplify claim processing, strengthen digital compliance, and improve social security administration.

1. EPFO Increases Auto-Settlement Limit to ₹5 Lakh

EPFO has expanded the automated claim settlement limit from ₹1 lakh to ₹5 lakh for eligible advance claims relating to illness, education, and housing.

Key Highlights

• Auto-settlement limit increased to ₹5 lakh.
• Faster claim processing through the centralized CITES 2.01 platform.
• Target settlement timeline of three working days with minimal manual intervention.

This initiative is expected to significantly improve claim processing efficiency and member experience.

2. Manual Annexure K Verification Phased Out

EPFO has streamlined inter-regional PF account transfers by removing the requirement for manual Annexure K verification and employer attestations.

Eligible transfers will now be processed directly through system-based database integration using UAN-Aadhaar authentication, reducing transfer delays and administrative effort.

3. EPF Interest Credit for FY 2025–26

The phased credit of 8.25% annual EPF interest for FY 2025–26 continues across member accounts.

Members are advised to periodically check their EPF passbooks, as interest is being credited in batches.

4. e-Shram Integration Expands Social Security Coverage

The Ministry of Labour & Employment is strengthening workforce integration under the Code on Social Security.

Employers engaging:

• Contract workers
• Temporary employees
• Gig workers
• Platform workers

should ensure proper linkage of worker records across:

• e-Shram Portal
• National Career Service (NCS)
• Skill India Digital Hub (SIDH)

This integration aims to improve workforce identification and facilitate access to social security benefits.

5. ESIC Compliance Remains the Responsibility of Principal Employers

Principal employers must continue to verify that outsourced manpower supplied by contractors is properly covered under the ESIC Scheme wherever applicable.

Regular compliance reviews should include:

• Employee registration under ESIC.
• Timely contribution deposits.
• Maintenance of statutory records.
• Periodic verification of contractor compliance.

6. Increased Focus on Contract Labour Wage Compliance

Recent labour agitations across various sectors have highlighted the importance of ensuring statutory wage compliance.

Organizations engaging contract labour should:

• Review contractor wage structures.
• Verify implementation of the latest State Variable Dearness Allowance (VDA) notifications.
• Ensure compliance with applicable Minimum Wages and labour laws.

These measures help mitigate principal employer liability and strengthen statutory compliance.

7. EPS 2026 Pension Administration Updates

EPFO continues implementing reforms under the Employees' Pension Scheme, 2026.

Current priorities include:

• Pro-rata calculation of pensionable wages across different wage ceiling periods.
• Faster disposal of Pension on Higher Wages (PoHW) applications.
• Resolution of validation issues.
• Standardized scrutiny and processing procedures.

These initiatives aim to improve consistency and transparency in pension administration.

8. Amnesty Schemes Continue to Encourage Voluntary Compliance

PF Trust Regularization

Eligible exempted PF trusts without formal statutory exemption notifications have been provided a six-month opportunity to seek retrospective regularization.

VISHWAS 2026 Amnesty Scheme

The scheme provides an opportunity for establishments to voluntarily regularize past non-compliance through concessional damages under Section 14B, helping reduce litigation and improve compliance.

Atwork India Consultancy's Compliance Advisory

As EPFO continues to modernize its digital ecosystem and strengthen statutory compliance mechanisms, employers should proactively review their payroll and compliance processes.

We recommend organizations to:

• Review PF and ESIC compliance for all employees and contract workers.
• Verify UAN and Aadhaar linkage.
• Monitor pending PF transfer requests and claim settlements.
• Ensure contractor wage compliance with applicable Minimum Wages and VDA notifications.
• Track EPF interest credits for employees.
• Evaluate eligibility under the available amnesty and regularization schemes.

Atwork India Consultancy Pvt. Ltd. remains committed to keeping businesses informed about the latest developments in labour laws, payroll, EPF, ESIC, industrial relations, and statutory compliance. Follow our News & Insights section for timely regulatory updates and practical compliance guidance.

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