EPFO Budget Circular 2026-27
Revised Estimates (RE) 2025-26 & Budget Estimates (BE) 2026-27 Guidelines
For Employees Provident Fund, Pension Scheme & Deposit-Linked Insurance Scheme
Issued: November 4, 2025 | Ref: BudgetRE-BEEPFOE-1200216
Executive Overview
The Employees Provident Fund Organisation (EPFO), Ministry of Labour and Employment, Government of India, has issued Budget Circular 2026-27 on November 4, 2025. This comprehensive circular provides detailed guidelines for the submission of Revised Estimates (RE) for FY 2025-26 and Budget Estimates (BE) for FY 2026-27 to all Zonal Offices, Regional Offices, and District Offices across the country.
The circular covers three major schemes administered by EPFO:
- Employees Provident Funds Scheme, 1952 – Primary retirement savings scheme for covered employees
- Employees Pension Scheme (EPS), 1995 – Pension benefits for eligible employees
- Employees Deposit-Linked Insurance Scheme (EDLI), 1976 – Insurance protection scheme
While this circular is primarily intended for EPFO staff and Zonal Office personnel, it contains valuable information about contribution calculations, budget planning procedures, and fund management that affects all covered central government employees. Understanding these processes helps employees appreciate how their PF contributions are managed and accounted for.
Regulatory Framework and Authority
Legal Basis: This Budget Circular has been issued in accordance with:
- Para 58 of the Employees Provident Funds Scheme, 1952
- Para 21 of the Employees Deposit-Linked Insurance Scheme, 1976
- Powers conferred under Government of India, Department of Economic Affairs Budget Division
The budgetary exercise is mandated to be placed before the Central Board of Trustees, EPFO for consideration and formal approval during FY 2025-26.
Key Submission Deadlines
Critical Dates for Submission:
| Office Level | Requirement | Deadline |
|---|---|---|
| District Offices | Submit budget proposals to Regional Offices | As decided by respective Zonal Office |
| Regional Offices | Submit consolidated proposals to Zonal Office | As decided by Zonal Office |
| Zonal Offices | Submit consolidated zone proposal to Head Office | 24 November 2025 |
| Head Office Divisions | Budget proposals for Head Office, NDC, and other units | 24 November 2025 |
| PDNASS & Training Institutes | Budget proposals including ZTIs and Sub-ZTI | 24 November 2025 |
Important Note: No budget proposals should be submitted directly from Regional Offices or District Offices to Head Office. All proposals must follow the hierarchical channel through Zonal Offices only.
Budget Categories and Fund Heads
Three Major Fund Categories
The budget proposals must separately show probable receipts and expenditures under the following funds:
1. EPF (Employees Provident Fund) Scheme, 1952
- Contribution receipts from employers and employees
- Income from investments
- Administrative expenditure
- Fund withdrawals and claims
2. EPS (Employees Pension Scheme) 1995
- Contribution receipts from employers and employees (diverted from EPF)
- Pension disbursements
- Administrative costs
- Fund management and investment income
3. EDLI (Employees Deposit-Linked Insurance Scheme) 1976
- Insurance contribution receipts
- Claims and benefits paid
- Administrative expenses
Budget Expenditure Classification System
Class I: Compensation to Employees
This includes salaries, dearness allowance, other allowances, bonus, rewards, medical treatment, leave travel concession, and training expenses for all EPFO staff across zones and offices.
Class II: Social Security of Employees
Covers pensionary charges and other social security benefits provided to EPFO employees.
Class III: Goods and Services
Encompasses all operational expenditure including:
- Travel Expenses: Domestic and foreign official travel
- Office Expenses: Rent, rates, lease charges, taxes
- Printing & Publication: Forms, reports, documents
- ICT Equipment: Computer hardware and software, telecommunications
- Advertising & Publicity: Public awareness programs
- Professional Services: Consultancy, audits, legal services
- Repair & Maintenance: Office equipment, buildings, vehicles
- Bank & Agency Charges: Financial transaction costs
Class IV: Aid and Assistance
Staff welfare activities including staff recreation club, benevolent fund, scholarships, medical checkup, and sports activities.
Class V: Non-Financial Assets (Capital Expenditure)
Fixed and intangible assets including:
- Land and buildings
- Infrastructure (water supply, solar systems, etc.)
- Machinery and equipment
- Motor vehicles
- Furniture and fixtures
- ICT equipment (servers, computers, etc.)
- Library books
Important Guidelines for Budget Preparation
Guidelines from Ministry of Finance
All budget proposals must adhere to the following Government of India guidelines:
- Cash Management System: As per OM No. 1213-BWM2020 dated 25.05.2022 on Modified Exchequer Control Based Expenditure Management
- Quarterly Expenditure Limit: No more than 33% of budget estimates should be spent in the last quarter (January-March)
- Monthly Expenditure Limit: No more than 15% of budget estimates should be spent in the last month (March)
- Controllable Expenditure Reduction: As per guidelines on curtailing avoidable expenditure
Variation Thresholds
Explanation Required When: Any variation beyond 10% in respect of income, contribution, or expenditure between:
- Actuals 2024-25 and RE 2025-26
- BE 2025-26 and RE 2025-26
- RE 2025-26 and BE 2026-27
Regional Offices must provide detailed justification notes to Zonal Offices for such variations.
Key Budgeting Principles
- Realistic Estimation: Budgets should be based on actual expenditure patterns and realistic projections
- Proper Justification: All requests for additional funds must be supported by careful examination of actual expenditure needs
- Avoid Re-appropriation: RE should be projected to avoid need for re-appropriation in the last quarter
- Prevent Fund Surrender: Avoid surrendering funds at the end of the financial year
- Income-Expenditure Correlation: Ensure adequate income resources to support proposed expenditure increases
- Collection Focus: Special attention to collection of entire Administrative Charges and Inspection Charges
Special Provisions and Amendments
EPS Expenditure Apportionment
Following the amendment of Paragraph 27 of the Pension Scheme, the ratio for apportionment of expenditure between EPF and EDLI schemes has been revised to 99:1.
Impact: To keep expenditure within this prescribed ratio, budget estimates must be prepared in consolidated form for EPF and EDLI combined. Head Office will conduct final apportionment after considering and finalizing all proposals. Separate budget proposals for EDLI expenditure are not required, though contribution income must be shown separately.
SBI Bank Service Charges
Para 11.5 of the EPFO-SBI agreement provides that:
- SBI linked branches raise bills for service charges on monthly basis to Regional Offices
- If no approval is received within 15 days, the charge is deemed approved automatically
- Disputed amounts are resolved as per Para 19 of the agreement
Action Required: Zonal Offices should direct Regional Offices to properly assess and project their bank service charge requirements to avoid ex-post facto approvals.
Outsourced Service Charges
While projecting estimates for Outsourced Service Charges, anticipated future recruitment appointments of SSAs (Sub-System Administrators), EOAs (Enforcement Officers), and APFCs should be considered in consultation with HRM EPFO Head Office.
Capital Budget Planning
All capital budget requirements must be carefully planned with reference to expected payment schedules for ongoing or new projects to avoid:
- Requests for budget revalidation
- Additional allocations from central pool
- Unnecessary re-appropriations
Responsibility of Various Departments
Additional Central Provident Fund Commissioners (ACCPFCs) - Zones
Responsibilities:
- Act as resource persons for regional formations in budget preparation
- Be involved in every stage of budget formulation
- Evaluate proposals with reference to past performance and fund utilization
- Act as economy scrutinizers to identify mismatches between estimates and actual expenditure
Regional Provident Fund Commissioners (RPFCs)
Should organize advance meetings with ACCPFCs to sort out all issues before sending budget proposals to Head Office.
Additional Central Provident Fund Commissioner (ACC) HR
By 24 November 2025, must provide:
- Total number of posts sanctioned and filled (category-wise) as of 30.09.2025
- Pay Level details for 6th and 7th CPC
- Details of additional posts proposed for 2025-26 with financial implications
- Motor vehicle budget requirements for all zones and Head Office
- RE 2025-26 and BE 2026-27 for welfare and sports activities with actuals
ACC Physical Infrastructure Development (PID) / Chief Engineer
Must submit office-wise proposals for capital expenditure by 24 November 2025, including:
- Land and buildings
- Infrastructural assets
- Machinery and equipment
- Furniture and fixtures
- Detailed justifications for each proposal
ACC Publicity
Must review and forward budgetary requirements for Advertisement and Publicity budget head by 24 November 2025.
PDNASS and Training Institutes (ZTIs, Sub-ZTI)
Director PDNASS must submit consolidated proposals for all training institutes by 24 November 2025.
Data Accuracy and Reconciliation Requirements
Critical Reconciliation Points
All figures must match across multiple sources:
- Income and Expenditure figures for 2024-25 in budget proposals must match the Audited Balance Sheet
- Actual expenditure up to 30.09.2025 in budget proposals must tally with figures reported in Monthly Expenditure Return (MER) up to September 2025
- No discrepancies allowed between different reporting systems
Documentation Format
All proposals must be:
- Furnished strictly in the prescribed proforma enclosed with the circular
- Submitted in Excel format (as provided)
- Forwarded in both hard copy and electronic formats
- Sent to budget.ho@epfindia.gov.in
Annexure Requirements
Regional Office final proposals must be annexed with the consolidated Zonal Office proposal sent to Head Office.
Contribution Income Estimation Methodology
Key Factors for Contribution Projections
When estimating contributions for RE 2025-26 and BE 2026-27, the following factors should be considered:
- Additional Membership: Growth in covered establishments and employee membership
- Additional Coverage: Extension of scheme to new sectors or categories
- General Rise in Wages: Wage inflation and salary increases
- Extension of Act: New industries coming under the scheme
- Cancellation of Exemptions: Previously exempted entities now coming under coverage
- Realization of Arrears: Collection of pending contributions
Separate Contribution Statements Required
Detailed statements showing individual contribution components must be submitted for:
- EPF Contribution – With separate columns for each factor
- EPS (Pension Scheme) Contribution
- EDLI Contribution
Administrative Procedure Requirements
Consolidation Process
Hierarchy of Consolidation:
- District Offices prepare individual proposals
- Regional Offices consolidate all District Office proposals into single Regional proposal
- Zonal Offices consolidate all Regional Office proposals into single Zonal proposal
- Head Office receives all Zonal proposals for final review and approval
Fund Distribution Process
After budget approval by the Central Board of Trustees:
- Head Office will distribute approved budget to Zonal Offices
- Distribution will be in proportion to RE/BE submitted by each zone
- Zonal Offices will then allocate funds to subordinate Regional Offices and District Offices
Quality Assurance
Budget proposals will be subject to meaningful scrutiny by Head Office, considering:
- Actual expenditure up to 30 September 2025 (provisional)
- Anticipated requirements for remaining period (October 2025 to March 2026)
- Historical expenditure trends and performance
- Proper fund utilization in previous years
Significance for Government Employees
Although this circular is procedural in nature, it is important for central government employees to understand how their Provident Fund and Pension contributions are managed and budgeted at the organizational level. The EPFO processes outlined here directly impact:
- Fund Safety: Proper financial management ensures the security of accumulated savings
- Timely Disbursements: Adequate budget allocation ensures smooth processing of claims and withdrawals
- Service Quality: Sufficient budget for staffing and technology ensures efficient EPFO operations
- Investment Returns: Well-managed funds can generate better investment returns
Central government employees covered under EPF/EPS/EDLI should appreciate the rigorous budgetary controls in place to safeguard their retirement benefits and insurance coverage.
- All Zonal Office proposals must reach Head Office by 24 November 2025
- Budget estimates must be realistic and based on actual expenditure patterns
- No more than 33% expenditure allowed in final quarter; 15% in final month
- All variations beyond 10% require detailed justification
- Three schemes covered: EPF, EPS, and EDLI with separate contribution accounting
- Strict hierarchical submission process mandatory – no direct submissions to Head Office
Download Official Documentation
The complete official Budget Circular 2026-27 with all detailed proformas, formats, and technical specifications has been issued by the EPFO Head Office, New Delhi. To access the full document:
📥 Download Official Budget Circular PDFAre you a Central Government Employee?
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