Social Security, EPFO & ESIC for the APFC Exam 2026: Notes, PYQs & MCQs
- The EPF Scheme 2026 came into force on 29 June 2026, replacing the 1952 scheme; EPS and EDLI were re-notified under the Code on Social Security.
- EPF contribution is 12% + 12%; of the employer’s share, 8.33% goes to EPS and 3.67% to EPF; wage ceiling Rs 15,000. FY 2025–26 interest: 8.25%.
- ESI covers establishments with 10+ employees, wage limit Rs 21,000; contribution 0.75% / 3.25%; disablement is decided by the Medical Board.
- EPFO’s apex body is the tripartite Central Board of Trustees, chaired by the Union Labour Minister; the APFC handles coverage, assessment (s.7A), recovery and claims.
- Atal Pension Yojana: age 18–40, pension Rs 1,000–5,000 after 60 (income-tax payers barred since Oct 2022).
Social security is the subject the Assistant Provident Fund Commissioner (APFC) job is built on, and the 2025 paper turned its current-affairs questions distinctly EPFO- and ESIC-flavoured. This guide covers the concepts of social security, the EPFO organisation an APFC works inside, the current 2026 EPF, EPS and EDLI schemes, ESIC, and the wider government schemes — with solved previous-year questions and 40 practice MCQs.
Why social security is the APFC’s core subject
Along with labour law, social security and EPFO/ESIC form the largest weight in the APFC paper. UPSC aspirants know these schemes only as current affairs; the APFC exam tests them by exact design — contribution rates, thresholds, benefit rules and the administrative machinery.
Foundations of social security
- Social insurance vs social assistance: insurance is contributory (EPF, ESI); assistance is non-contributory and tax-funded (old-age pension under NSAP).
- Bismarck vs Beveridge models: Bismarckian is contributory and employment-linked; Beveridgean is universal, tax-funded and flat-rate.
- ILO Convention 102 (1952) defines nine branches of social security: medical care, sickness, unemployment, old-age, employment injury, family, maternity, invalidity and survivors.
- Constitutional basis: Article 41 (assistance in old age, sickness, unemployment), Article 42 (maternity relief), Article 43 (living wage); social security is on the Concurrent List.
- The Code on Social Security, 2020 is the first law to cover gig and platform workers.
EPFO organisation and the APFC’s role
The Employees’ Provident Fund Organisation (EPFO) is a statutory body under the Ministry of Labour & Employment and one of the world’s largest social-security bodies. Its apex body is the tripartite Central Board of Trustees (CBT), chaired by the Union Labour Minister; the Central Provident Fund Commissioner (CPFC) is the chief executive, with a field hierarchy of Additional CPFC, Regional PFCs and Assistant Provident Fund Commissioners.
An APFC handles coverage, assessment of dues (Section 7A), interest (Section 7Q), damages (Section 14B), recovery and claim settlement, and oversees exempted establishments. EPFO is modernising under EPFO 3.0 — auto-settlement, UPI/ATM-linked access and face-authentication UAN.
The current EPF, EPS and EDLI schemes (2026)
Under the Code on Social Security, EPFO’s three schemes were re-notified. The EPF Scheme 2026 came into force on 29 June 2026, replacing the 74-year-old 1952 scheme.
The contribution split
- Employee 12% of wages to the provident fund.
- Employer 12%, of which 8.33% to EPS (capped on wages of Rs 15,000, up to Rs 1,250) and 3.67% to EPF.
- FY 2025–26 interest rate: 8.25% (declared annually).
- Wage ceiling ₹15,000; full withdrawal after 2 months of unemployment.
- About 13 separate withdrawal categories; EPS minimum pension ₹1,000; EDLI maximum ₹7 lakh.
- Members retain a 25% minimum balance; withdrawals capped at 75%.
- 13 rules merged into 3 heads; full withdrawal only after 12 months of unemployment; explicit voluntary contributions.
EPS (pension): superannuation pension after 10 years’ service at age 58; minimum pension Rs 1,000/month; monthly pension = (pensionable salary × service) ÷ 70. EDLI (insurance): a free life cover up to Rs 7 lakh (minimum Rs 2.5 lakh).
Disadvantages of the Provident Fund scheme: (1) inadequate for risks early in working life; (2) inflation erodes savings; (3) it generates forced saving to finance national development. Which are disadvantages?
(1) and (2) are genuine weaknesses of a lump-sum PF; (3) is a macro-economic use of the fund, not a disadvantage to the worker.
Answer — 1 and 2 only
ESIC: coverage, contributions and benefits
The Employees’ State Insurance Corporation runs a contributory health-and-cash-benefit scheme under the ESI Act, 1948 — India’s first major social-insurance scheme.
- Coverage: non-seasonal units with 10+ employees; wage limit Rs 21,000 (Rs 25,000 for persons with disability).
- Contribution: employee 0.75%, employer 3.25%; contribution periods (Apr–Sep, Oct–Mar) map to benefit periods (Jan–Jun, Jul–Dec).
- Benefits: medical, sickness (70% wages up to 91 days), maternity (26 weeks at full wages), temporary and permanent disablement (90%), dependants’ benefit, and funeral expenses (Rs 15,000).
- Authorities: disablement is decided by the Medical Board; disputes go to the ESI Court; registration drives such as SPREE bring left-out units onto the rolls.
- Coverage 10+; wage limit ₹21,000; contribution 0.75% / 3.25%.
- ESI provisions absorbed into the Code; ESIC continues as administrator; coverage extendable to gig workers and all districts by notification.
The ESI Act, 1948 covers: (1) establishments with 10+ employees; (2) comprehensive medical care for employees and families; (3) cash benefits during sickness and maternity; (4) monthly payments on death or disablement. Which are correct?
All four describe the scheme accurately.
Answer — 1, 2, 3 and 4
Government social-security schemes
| Scheme | Type | Eligibility & benefit |
|---|---|---|
| Atal Pension Yojana | Pension | Age 18–40; ₹1,000–5,000/month after 60; income-tax payers barred since Oct 2022. |
| PM-SYM | Pension (unorganised) | Age 18–40, income ≤ Rs 15,000; assured ₹3,000/month after 60. |
| PMJJBY | Life insurance | Age 18–50; premium ₹436/yr; cover ₹2 lakh. |
| PMSBY | Accident insurance | Age 18–70; premium ₹20/yr; cover ₹2 lakh. |
| e-Shram | Registry | National database of unorganised workers, with a UAN card. |
| ELI | Incentive | Employment Linked Incentive via EPFO, run as the PM Viksit Bharat Rozgar Yojana. |
| NPS / NSAP | Pension / assistance | NPS (PFRDA, Tier I & II); NSAP non-contributory (IGNOAPS, IGNWPS, IGNDPS). |
Atal Pension Yojana — which are correct? (1) beneficiary 18–40; (2) pension only after 60; (3) spouse continues on death; (4) no nominee permitted.
1–3 are correct; a nominee is permitted, so (4) is wrong.
Answer — 1, 2 and 3 only
Precise-provisions quick reference
| Provision | Exact figure |
|---|---|
| EPF contribution | 12% / 12%; 8.33% to EPS, 3.67% to EPF |
| EPF wage ceiling / interest 2025–26 | ₹15,000 / 8.25% |
| EPF Scheme 2026 minimum balance | 25% retained |
| EPS minimum pension / eligibility | ₹1,000/month; 10 years, age 58 |
| EDLI assurance | max ₹7 lakh, min ₹2.5 lakh |
| ESI wage limit / contribution | ₹21,000 / 0.75% + 3.25% |
| ESI sickness / maternity | 70% up to 91 days / 26 weeks |
Practice MCQs on social security, EPFO and ESIC
Forty practice questions covering the concepts, EPFO organisation, the 2026 schemes, ESIC and government schemes. Answers follow the set.
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Frequently asked questions
When did the EPF Scheme 2026 come into force?
The Employees’ Provident Funds Scheme, 2026 came into force on 29 June 2026, replacing the 1952 scheme, under the Code on Social Security.
What is the EPF interest rate for 2025-26?
The EPF interest rate for FY 2025-26 is 8.25%. It is declared annually by the Central Board of Trustees and ratified by the government.
How is the EPF contribution split between EPF and EPS?
The employee contributes 12% of wages to the provident fund. The employer contributes 12%, of which 8.33% goes to the pension scheme (EPS, capped on wages of Rs 15,000) and 3.67% to the provident fund.
What is the ESI wage limit and contribution rate?
The ESI wage-coverage limit is Rs 21,000 per month (Rs 25,000 for persons with disability). The employee contributes 0.75% and the employer 3.25% of wages.
What is the Central Board of Trustees of EPFO?
EPFO is a statutory body under the Ministry of Labour and Employment. Its apex decision-making body is the tripartite Central Board of Trustees, chaired by the Union Labour and Employment Minister; the Central Provident Fund Commissioner is the chief executive.
What is the minimum EPS pension per month?
The minimum pension under the Employees’ Pension Scheme (EPS) is Rs 1,000 per month. Superannuation pension is payable after 10 years of service at age 58.
What is the eligibility for the Atal Pension Yojana?
The Atal Pension Yojana is open to those aged 18 to 40 and pays Rs 1,000 to Rs 5,000 a month after age 60. Income-tax payers have been barred from joining since October 2022.
How much balance must be retained under the EPF Scheme 2026?
Under the EPF Scheme 2026, a member must generally retain a minimum balance of 25%, with partial withdrawals capped at 75%.
