The Central Government has introduced the Employees’ Provident Funds Scheme, 2026 under the Code on Social Security, 2020.
The new rules aim to make PF withdrawals simpler while ensuring that employees continue to maintain enough savings for retirement.
Under the new scheme, the government has reduced complicated withdrawal rules and created a simpler structure for accessing EPF money.
EPF Withdrawal Rules Divided Into Three Categories
Earlier, EPF withdrawals had different rules for medical treatment, marriage, education, house purchase, home loan repayment, renovation, natural disasters, and other situations.
The new EPF Scheme 2026 has combined these 13 separate withdrawal provisions into just three broad categories:
Essential needs: Includes illness, education, and marriage.
Housing requirements: Includes buying, building, repairing a house, or repaying a home loan.
Special circumstances: Covers other situations where withdrawal is allowed.
This change is expected to make it easier for members to understand when and how they can withdraw their PF money.
PF Withdrawal Allowed After 12 Months of Membership
Under the earlier EPF rules, different withdrawal purposes had different eligibility requirements.
The new scheme introduces a common rule.
Members can now become eligible for most partial withdrawals after completing 12 months of total EPF membership.
After one year of membership, withdrawals can be made for:
Medical emergencies
Education
Marriage
Housing-related needs
Special circumstances
New Rule: 25% EPF Balance Must Remain in Account
The EPF Scheme 2026 introduces the concept of Eligible Member Balance.
According to the new rules, members must keep at least 25% of their total EPF savings in their account after making a withdrawal.
This minimum balance includes:
Employee contribution
Employer contribution
Interest earned on the EPF account
The amount available for withdrawal after keeping this mandatory balance is called the Eligible Member Balance.
100% Withdrawal Allowed for Medical, Education and Marriage Needs
For essential needs such as illness, education, and marriage, members can withdraw up to 100% of their Eligible Member Balance after completing 12 months of EPF membership.
However, there are limits on how many times these withdrawals can be made:
Education withdrawal: Up to 10 times during the membership period.
Marriage withdrawal: Up to 5 times during the membership period.
Housing Withdrawals Simplified Under One Category
The new scheme combines all housing-related withdrawals into a single category.
Earlier, separate rules existed for:
Buying a house or land
Constructing a house
Home renovation
Home loan repayment
Now, members can withdraw up to 100% of their Eligible Member Balance for housing needs after completing one year of EPF membership.
Such withdrawals can be made up to five times during the membership period.
Withdrawal Allowed in Special Situations
The new EPF rules also provide flexibility during special circumstances.
Members can withdraw up to 100% of their Eligible Member Balance after completing 12 months of EPF membership.
However, withdrawals under this category can be made only twice during the entire membership period.
What Happens If You Leave Your Job Before 12 Months?
The new scheme also provides relief for employees who leave their job before completing one year of EPF membership.
Such members can still make a partial withdrawal, but the amount will be limited to their Eligible Member Balance available on the date of withdrawal.
Overall, the EPF Scheme 2026 aims to make PF withdrawals faster and easier while ensuring employees continue to preserve a portion of their retirement savings.
