EPFO has made major changes under the new EPF Scheme 2026. Now it will be mandatory to keep at least 25% of the amount after withdrawal from PF account. Know why the new rule was implemented, who will get the benefit and what effect it will have on retirement savings.
EPFO NewsDuring employment, most people consider PF (Provident Fund) as money to be withdrawn only when needed. But this thinking is becoming a problem for many employees at the time of retirement.
Recent data from the Employees’ Provident Fund Organization (EPFO) has revealed that a large number of employees are able to save very little amount in their PF account till retirement. To change this situation, EPFO has made an important change under the new EPF Scheme 2026.
Why were you saving only Rs 10-20 thousand for retirement?
According to EPFO, at the time of last payment, only Rs 10,000 to 20,000 were left in the PF account of about 48.7 percent employees. This means that due to frequent withdrawals during employment, financial security at the time of retirement becomes quite weak.
Keeping this problem in mind, EPFO has implemented a new system so that employees can withdraw money at the time of need and also maintain adequate savings for the future.
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What changed in the new EPF Scheme 2026?
Withdrawal rules have been simplified in the new EPF Scheme implemented from July 1, 2026. Now employees can withdraw money from PF for needs like illness, education, marriage and buying a house after completion of 12 months of service.
However, the new rule also says that it will be mandatory to keep at least 25 percent of the total deposit amount in the PF account. That means employees will not be able to withdraw the entire amount. Its objective is to ensure minimum savings for retirement.
Lakhs of rupees will be left even after 75% withdrawal
EPFO gave the example that if an employee works at a monthly salary of Rs 15,000 for 20 years, then about Rs 14 lakh can be deposited in his PF account.
Even if he withdraws 75 percent of the amount in between, there will still be around Rs 3.5 lakh left in his account. The organization believes that with this change, employees’ retirement savings can be 7 to 35 times more than before.
The objective of the new system is to provide double benefits to the employees, it should be easy to withdraw from PF at the time of need and sufficient amount should also remain in the account for financial security after retirement. This will make future financial planning stronger than before.
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