New EPF Scheme: Several Changes regarding Withdrawals and other Rules
New Delhi, July 2: New rules related to the Employees’ Provident Fund (EPF) Scheme 2026 have been notified, under which there are several changes and developments for the subscribers, especially regarding partial withdrawals.
The EPF Scheme 2026 replaces the decades-old EPF Scheme, 1952 and has been brought by the government as part of implementation of the Code on Social Security, 2020.
Under the new regulations, EPFO members can make partial withdrawals for several important reasons but a minimum balance of 25% must be maintained in their EPF accounts.
Any amount calculation for a minimum withdrawal will be done only after setting this balance aside.
For example, if an EPF subscriber has a total balance of Rs 1 lakh in his account, at least Rs 25,000 out of this amount must be maintained in the account after withdrawals, if any.
The criteria for withdrawals include medical treatment, education for self or any family member, marriage, housing-related aspects or any special circumstances. These are subject to conditions.
Eligibility requirements for Withdrawals
| Withdrawal Reason | Eligibility Requirement | Maximum Amount Allowed | Key Condition |
|---|---|---|---|
| Medical treatment | After 12 months of membership | Up to 100% of the eligible balance | For self or family members |
| Education | After 12 months of membership | Up to 100% of the eligible balance | Allowed up to 10 times during membership |
| Marriage | After 12 months of membership | Up to 100% of the eligible balance | Allowed up to 5 times during the membership of the fund |
| Housing | After 12 months of membership | Up to 100% of the eligible balance | For purchase, construction, repairs or home loan repayment |
| Special circumstances | After 12 months of membership | Up to 100% of the eligible balance | Subject to approval under EPF rules |
| Exit from employment | Even before 12 months membership | Up to 100% of the eligible balance | Maximum 2 withdrawals in a financial year |
The minimum balance rule applies to both employee and employer contributions.
The revised rules also allow members leaving employment before completing 12 months of service to make partial withdrawals under specified conditions. (BVI)
