The central government has rolled out the Employees’ Provident Funds Scheme, 2026, under the Code on Social Security, 2020. The idea behind the new rules is to make PF withdrawals easier while also protecting retirement savings. The new scheme has a simpler structure in place for withdrawal provisions, withdrawal limits, and service conditions.
EPF Scheme 2026: Withdrawal rules under 3 categories
According to the new scheme, there will no longer be separate regulations for medical treatment, marriage, education, home purchase, home loan repayment, house renovation, natural calamity and other situations for PF withdrawal. The new scheme simplifies PF withdrawals by consolidating 13 fragmented rules into three broad categories. The categories are essential needs such as illness, education and marriage; housing-related requirements and special circumstances.
EPF Scheme 2026: 12 months membership for partial withdrawals
Under the old EPF Scheme, different withdrawals required varying service durations. According to the new scheme, members can become eligible for most partial withdrawals after completing 12 months of total membership in the Fund. Most partial withdrawals for medical emergencies, housing, marriage or education are now unlocked after just 12 months of EPF membership.
EPF Scheme 2026: Eligible Member Balance
The new scheme has introduced Eligible Member Balance. According to the new notification, “Minimum Balance means an amount equivalent to twenty-five percent of the aggregate of the total contributions made to the Fund to the credit of the member (inclusive of both the employee’s and the employer’s share and interest thereon)… which shall remain to the credit of the member after giving effect to any partial withdrawal.”
Therefore, at least 25 percent of your accumulated EPF savings, including your contributions, your employer’s contributions and the interest earned, must stay in your account after a withdrawal.
The amount that can actually be withdrawn is called the Eligible Member Balance which is your EPF balance after deducting this mandatory minimum balance.
EPF Scheme 2026: 100 percent withdrawal for essential needs
Under the new scheme, essential needs includes illness, education and marriage. Under this scheme, for medical treatment of the member or family, marriage and education, withdrawals of up to 100 percent of the Eligible Member Balance are allowed after completing 12 months of membership. Withdrawals for education can be made up to 10 times during membership and those for marriage can be made up to five times during membership.
EPF Scheme 2026: 100 percent withdrawal for housing-related work
The new scheme combines all the housing-related requirements under one housing category. There will no longer be separate rules for buying a house or land, constructing a house, renovating an existing home or repaying a home loan. Members can withdraw up to 100 percent of the eligible member balance after completing one year of membership. Such withdrawals can be made up to five times during membership.
EPF Scheme 2026: 100 percent withdrawal in special circumstances
The scheme also allows withdrawals in special circumstances. According to the notification, a member may, in special circumstances, be allowed partial withdrawal from the Fund, up to one hundred percent of the Eligible Member Balance after completion of twelve months of total membership in the Fund. Such withdrawals can be made up to two times during membership.
EPF Scheme 2026: Withdrawals on leaving job
The new scheme allows for partial withdrawal for members who exit the job before completing 12 months. Such members can still make a partial withdrawal but only up to their Eligible Member Balance available on the date of withdrawal.
