India just rewrote how more than 30 crore workers reach their retirement savings. The EPFO withdrawal reform lets staff pull provident fund money through UPI and ATMs, with no employer sign-off. For founders running India payroll, that changes a process you have managed for years. Meanwhile, Washington moved to raise H-1B wages by up to a third, and the comment window closes today. The UK switched on day-one family leave, and Canada tightened its work permit rules. So here is what each change means for your distributed team, and what to do this week.
India’s EPFO Withdrawal Reform Opens PF to UPI and ATMs
The Employees’ Provident Fund Organisation is overhauling how members access their savings. The board approved the EPFO withdrawal reform as part of a wider “EPFO 3.0” upgrade, and the Ministry of Labour and Employment has cleared it. Members will be able to withdraw provident fund money through UPI apps and bank ATMs, without waiting for employer approval (Source: EPFO).
What the EPFO withdrawal reform changes
First, the old set of 13 withdrawal provisions collapses into three simpler categories, led by an “Essential Needs” bucket that covers illness, education, and marriage. Second, a member who loses their job can pull 75% of the balance right away, while 25% stays invested. Third, the ATM and UPI route is expected to go live by the end of May 2026. The full rollout is targeted for mid-2026 (Source: Business Today). Testing delays have pushed the timeline before, so treat the date as a target, not a promise.
Why the EPFO reform matters for your India payroll
If you employ people in India, your monthly compliance work shifts. EPFO has upgraded the Electronic Challan-cum-Return system with structured filing and tighter validation, which should cut filing errors. At the same time, employees will self-serve more of their own withdrawals. As a result, your HR inbox sees fewer “release my PF” tickets. You still owe the same contributions, though, and the 25% minimum balance rule stays in force. For the underlying mechanics, our India payroll guide walks through PF contribution math.
What to do before the EPFO rollout
Confirm your payroll provider or EOR already supports the new ECR format. Then brief your India team that ATM and UPI withdrawals are coming, but do not commit to a hard launch date. For a deeper primer on how provident fund really works, this field guide to EPFO lessons is worth ten minutes.
US Raises H-1B Prevailing Wages by Up to 33%
The US Department of Labor proposed a new way to set prevailing wages for the H-1B, H-1B1, E-3, and PERM programs. The rule landed on March 27, 2026, and its 60-day comment period ends today, May 26, 2026 (Source: US Department of Labor). Specifically, Level I wages jump from the 17th to the 34th percentile, and Level IV climbs from the 67th to the 88th. In practice, the DOL wants to lift required wages by as much as 33% (Source: Federal Register). So if you sponsor foreign talent, model higher salary floors for any FY2027 filing now. If you want a say, file a comment before the deadline tonight. Our US hiring guide covers sponsorship basics for first-time employers.
UK Day-One Family Leave Lands for New Hires
The UK’s Employment Rights Act 2025 is rolling out in phases. Since April 6, 2026, paternity leave and unpaid parental leave are day-one rights. A new hire no longer waits out a qualifying period (Source: GOV.UK). Next, the unfair dismissal qualifying period drops from two years to six months. That change applies to dismissals from January 2027. So anyone hired from July 2026 gains protection once they pass six months of service (Source: legislation.gov.uk). Therefore, do not lean on a long probation cushion for British hires. Update your contracts and handbook now. See our UK employment law overview for the current rules.
Canada Clarifies LMIA-Exempt Work Permit Rules
Canada’s immigration department updated its officer guidance for LMIA-exempt work permits granted under the WTO’s General Agreement on Trade in Services. The change gives professionals entering under that trade route clearer criteria (Source: CIC News). Meanwhile, intra-company transfer permits face tougher scrutiny, because firms must now show revenue-generating operations in at least two countries. Companies setting up their first Canadian presence no longer qualify under the ICT route. So if you planned to move a key hire to Canada through an internal transfer, check the two-country test before you file. Our Canada work permit guide lays out the alternatives.
Quick Hits
- EU: All 27 member states must transpose the Pay Transparency Directive into local law by June 7, 2026. However, large economies including Germany and France are expected to miss the deadline (Source: Pinsent Masons).
- US: The same DOL package resets PERM green-card wage levels, not just temporary H-1B wages. Permanent sponsorship budgets are affected too (Source: Federal Register).
EPFO Reform and Compliance Action Items
If you run India payroll: Confirm your provider or EOR supports the upgraded ECR filing format. Then tell your India team the EPFO withdrawal reform is coming, but flag that the ATM and UPI launch date may still slip.
If you sponsor H-1B or E-3 talent: Model salary floors at the higher percentiles for any FY2027 filing. If you want input, file a comment before the May 26 deadline tonight.
If you hire in the UK: Add day-one paternity and unpaid parental leave to your contracts now. Review your dismissal process ahead of the July 2026 change.
If you move staff to Canada: Re-check intra-company transfer eligibility against the new two-country operations test before filing.
Running payroll and compliance across India, the US, the UK, and Canada at once is the hard part. Asanify’s Global HRMS and EOR handle multi-country payroll, statutory filings, and contracts in one place. So a change like the EPFO withdrawal reform updates on our side, without a fire drill on yours.
FAQ: EPFO Withdrawal Reform and Global Hiring
Q: What is the EPFO withdrawal reform?
It is an overhaul of how Indian provident fund members access their savings. Workers will be able to withdraw money through UPI and ATMs, with no employer approval needed. The 13 old withdrawal categories collapse into three. Unemployed members can take 75% of their balance immediately. It is part of the wider EPFO 3.0 upgrade expected to roll out through mid-2026.
Q: Do employers still need to approve EPFO withdrawals?
No. Under the new system, members can pull eligible amounts through UPI or an ATM without waiting for the employer to sign off. Employers still file contributions through the upgraded ECR system and must keep deposits current.
Q: Are the higher US H-1B wages already in effect?
Not yet. The Department of Labor’s wage increase is a proposed rule, and its public comment period runs until May 26, 2026. It becomes binding only after the agency reviews comments and issues a final rule.
Q: Do we need an EOR to manage India PF compliance?
Not always, but it helps for small teams. If you have only a few hires in India and no local entity, an EOR handles PF registration, ECR filing, and statutory deposits for you. Larger teams often set up their own entity once headcount and tax complexity grow.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.
