New EPF Scheme 2026: Simpler PF Withdrawal Rules, 1-Year Eligibility, and 25% Minimum Balance Explained

The Government of India has notified the Employees' Provident Funds (EPF) Scheme, 2026, replacing the EPF Scheme, 1952, which had been in force for nearly 74 years.

While the primary objective of the EPF remains to help employees build retirement savings, the new scheme simplifies withdrawal rules, allows earlier access to PF savings, and introduces a mandatory minimum balance to protect retirement funds.

Major Changes Under the EPF Scheme 2026

The new scheme aims to make PF withdrawal rules easier to understand by reducing multiple conditions into a simpler framework.

Some of the key changes include:

• Earlier eligibility for most partial withdrawals.
• Simplified withdrawal categories.
• Mandatory 25% balance to remain in the PF account after partial withdrawals.
• Uniform rules for several withdrawal purposes. 

EPF Scheme 2026: Key Highlights

Withdrawal Rules Simplified

Earlier, EPF members had to follow different withdrawal rules for medical treatment, education, marriage, home purchase, home loan repayment, renovation, and natural calamities.

The new scheme groups these into 3 broad categories, making the process easier to understand and reducing confusion.

These categories include:

• Illness, education and marriage.
• Housing-related needs.
• Special circumstances. 

Earlier Eligibility for Partial Withdrawals

One of the biggest changes is the reduction in the minimum membership period.

Previously, different withdrawals required members to complete different lengths of service, ranging from 5 to 7 years in many cases.

Under the new rules, members become eligible for most partial withdrawals after completing 12 months of EPF membership.

New 25% Minimum Balance Rule

The EPF Scheme 2026 introduces a new requirement that members must retain at least 25% of their total PF balance after making any partial withdrawal.

This minimum balance includes:

• Employee contributions.
• Employer contributions.
• Interest earned. 

The amount available for withdrawal will be calculated only after leaving this mandatory balance in the account.

What Is Eligible Member Balance?

The new scheme introduces the term Eligible Member Balance.

It refers to the amount available for withdrawal after deducting the mandatory 25% minimum balance that must remain in the PF account.

Withdrawal Limits for Different Purposes

Medical Treatment

Members can withdraw up to 100% of their eligible balance for medical treatment after completing 12 months of membership.

Education

Members can withdraw up to 100% of the eligible balance for education after one year of membership. This facility can be used up to 10 times during the membership period.

Marriage

For marriage-related expenses, members can also withdraw up to 100% of the eligible balance after one year of membership. These withdrawals are allowed up to 5 times.

Housing

The new scheme combines all housing-related withdrawals, including buying land, purchasing a house, construction, home loan repayment, and renovation, under a single category.

Members can withdraw up to 100% of the eligible balance after one year of membership, with a maximum of five withdrawals during their membership.

Special Circumstances

Under special circumstances, members can withdraw up to 100% of the eligible balance after completing one year of membership.

However, these withdrawals are limited to 2 times in a financial year.

Relief for Employees Leaving Within 1 Year

Employees who leave their jobs before completing one year of EPF membership will also receive some relief.

They can make a partial withdrawal, subject to the available Eligible Member Balance in their account.

What Has Not Changed?

The rules for final PF settlement remain largely unchanged.

Members can still withdraw their full PF balance in situations such as:

• Retirement after the age of 55.
• Permanent disability.
• Permanent migration abroad.
• Retrenchment.
• Voluntary retirement.
• Other eligible exit conditions under the scheme. 

Read More: IDFC FIRST Bank Launches EPFO-Integrated PF Payment Service for Businesses!

Conclusion

The EPF Scheme 2026 significantly simplifies the PF withdrawal process by introducing uniform rules and reducing the waiting period for most withdrawals to just one year. At the same time, the new requirement to maintain at least 25% of the PF balance ensures that employees continue to build retirement savings while still having access to funds when needed. Overall, the revised scheme aims to make EPF withdrawals easier, more transparent, and better aligned with long-term financial security.

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