Employees Provident Fund
If you work and your Employee Provident Fund (EPF) account is there, then there is big news for you. The government has implemented EPF Scheme-2026, under which the rules for partial withdrawal from PF have been made much easier than before. The new system has come into effect from 29 June 2026. Its purpose is to make money easily available to the employees in times of need, while also securing adequate savings for retirement.
Now it will be mandatory to maintain 25% balance
The biggest change under the new rule is that even after making partial withdrawal from the PF account, at least 25 percent of the amount should remain in the account. That is, employees will be able to withdraw only 75 percent of the amount, which is called ‘Eligible Member Balance’. The contributions of both the employee and the company will be included in this balance.
You can withdraw PF money for these 5 needs
Under the new EPF scheme, employees can withdraw money from their PF account under five main circumstances.
1. Home related work: Up to 100 per cent of the eligible balance can be withdrawn for purchasing, constructing a house, purchasing land, repaying a home loan or renovating the house.
2. Treatment: Up to 100% of the eligible balance can also be withdrawn for the treatment of the employee or eligible family member.
3. Higher Education: Withdrawal facility will be available maximum 10 times during the membership period for your own or eligible family member’s studies.
4. Marriage: Money can be withdrawn from PF maximum 5 times for the marriage of yourself or an eligible family member.
5. Special Circumstances: Withdrawal of up to 100 percent of the eligible balance will also be allowed in case of economic crisis or other special circumstances specified in the scheme.
The rule of service period also became easier
Earlier, to withdraw money from PF, there was a requirement of 2 to 7 years of employment depending on different requirements. However, this condition was not applicable for medical emergency. Now under the new scheme, in most cases, partial withdrawal can be made only after completion of 12 months of EPF membership. This will give employees quick access to their money when needed.
The process of documents also became simple
In the new system, the online claim process has been made easier than before. If the employee’s Aadhaar, UAN, bank account and KYC are completely updated, there will be no need to submit physical documents in most cases. However, EPFO may ask for additional documents if required in matters related to medical, education or house.
What hasn’t changed?
Many changes have been made in the new scheme, but some rules will remain the same. The rule of completing five years of continuous service is still only for tax purposes and not for eligibility for withdrawal. Apart from this, there has been no change in the rate of contribution to EPF, calculation of interest and facility of UAN.
What is your advice for employees?
Experts say that EPF should be seen only as a retirement fund. Therefore, withdraw money from PF only when really needed. It is important to consider tax rules and other financial options before making a withdrawal. The more money remains in the EPF account for a longer period, the bigger the corpus will be at the time of retirement.
