EPF Withdrawal Rules Revised With New Balance Requirement

Hyderabad, July 2: The Union Government has notified the Employees’ Provident Fund Scheme 2026, introducing key changes to EPF withdrawal rules. The revised provisions came into effect on June 29 and require members to maintain at least 25 percent of their provident fund balance before making partial withdrawals.

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Under the new rules, the mandatory 25 percent balance applies while calculating the amount eligible for withdrawal from the EPF account. The provision covers both the employee’s and employer’s contributions.

EPF Withdrawal Rules Updated

For example, if a subscriber has an eligible balance of Rs 1 lakh, at least Rs 25,000 must remain in the account. The remaining Rs 75,000 can be withdrawn according to the scheme’s provisions. EPFO refers to the amount available after retaining the mandatory balance as the “Eligible Member Balance.”

The revised scheme also expands the list of purposes for partial withdrawals. Members can withdraw funds for purchasing a house or flat, buying land for house construction, constructing a house, repaying a home loan, and carrying out home repairs or modernisation.

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In addition, members can withdraw up to 100 percent of the eligible balance for medical treatment, children’s higher education and marriage expenses. Partial withdrawals are permitted after completing 12 months of employment.

The government has also simplified the process by removing the requirement to provide additional explanations for withdrawals under specified circumstances.

Meanwhile, the Employees’ Provident Fund Organisation (EPFO) is enhancing its digital services. It plans to introduce UPI based PF withdrawals, allowing subscribers to receive funds directly in their bank accounts. Officials said testing has been completed, and the facility is expected to benefit more than seven crore EPFO members.

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EPFO is also preparing to launch WhatsApp based services next month. Subscribers will be able to check their PF balance, view the last five transactions and track claim status through the verified EPFO WhatsApp account. The services will also be available in regional languages.