EPF Scheme 2026: The government has notified the new Employees’ Provident Fund (EPF) Scheme, 2026. The new rules allow PF members to withdraw up to 100 percent of their eligible balance for various needs.
Add rightsofemployees.com as a Preferred Source
EPF Scheme 2026 : The central government has notified the new Employees’ Provident Fund (EPF) Scheme, 2026. Under this scheme, a simplified and new framework has been introduced for partial withdrawals from EPF accounts. This new scheme, notified under the Social Security Code, 2020, replaces the six-decade-old EPF Scheme, 1952.
The new rules allow PF members to withdraw up to 100 percent of their eligible balance for various needs. A new rule has also been added, requiring every member to maintain a minimum balance in their EPF account.
Are the withdrawal rules changing?
Under the new rules, EPF members can apply for partial withdrawals online through a designated portal. It’s important to note that these withdrawals are subject to certain conditions. According to the scheme’s rules, the Commissioner may approve partial withdrawals upon a member’s application through the designated portal, subject to the requirement to maintain a minimum balance in the member’s account. This minimum balance has been defined for the first time in the new scheme.
What is Eligible Member Balance and Minimum Balance?
According to the notification, the minimum balance calculation is as follows: Minimum balance refers to an amount equal to 25 percent of the total contributions deposited in a member’s account (including both employee and company contributions, plus interest earned on them). This amount must remain in the member’s account after any partial withdrawal benefit is granted. Simply put, at least 25 percent of your total EPF savings (your contribution + company contribution + interest) will remain blocked in your account even after withdrawal.
The amount remaining after deducting this mandatory 25 percent minimum balance is called the eligible member balance. An employee can withdraw only this eligible member balance from the account.
What are the rules for leaving the job within 1 year?
This scheme provides significant relief to employees who leave their job before completing 12 months of starting their employment. According to the new rules, even if a member leaves their job within one year, they will still be entitled to a partial withdrawal of their PF. However, such a member will only be able to withdraw funds up to the extent of their eligible member balance available as of the date of withdrawal.
When and for what needs can I withdraw 100% eligible balance?
After completing a total of 12 months of EPF membership, members can withdraw up to 100% of their eligible member balance for various personal and family needs. These needs include the following:
Treating yourself or your family
Education in oneself or in the family
Marriage within one’s own family or family
Buying a house or flat
Buying land to build a house
building a house
Repaying Home Loan
Renovating/improving an existing home
Apart from this, in special circumstances, withdrawal of 100% eligible member balance may also be allowed after completion of 12 months membership.
How many times can the money be withdrawn?
The new scheme also limits the number of times a member can withdraw money for various purposes during his/her entire membership period.
For education: Maximum 10 withdrawals during the entire subscription period
For marriage: Maximum 5 withdrawals during the entire subscription period
For home/residential work: Maximum 5 withdrawals.
Under special circumstances: Maximum 2 withdrawals in a financial year.
Why is this new minimum balance rule necessary?
Previously, EPF withdrawal rules had different purposes and varying conditions, which in many cases led to members withdrawing most of their account balance. The new framework standardizes the entire withdrawal process by implementing a uniform concept of eligible member balance. It also ensures that at least 25 percent of employees’ retirement savings remain invested to secure their future.
Add rightsofemployees.com as a Preferred Source
