EPF New Rules 2026: PF withdrawal rules changed, know now how many thousand will be able to be withdrawn from Rs 1 lakh?

Business Desk – EPF New Rules 2026: The Central Government has made major changes in the rules related to Employees’ Provident Fund (EPF). Now EPF Scheme 2026 has been implemented in place of the old EPF Scheme 1952. The new system has become effective from 29 June 2026.

Under the new rule, employees will be able to withdraw money from PF for illness, education, marriage, buying a house or other eligible needs, but now it will be mandatory to leave at least 25% of the amount in the account. That is, like before, you will not be allowed to withdraw the entire eligible balance.

What has changed in the new rule of EPF withdrawal?

Under the new EPF Scheme 2026, the government has amended the rules for partial withdrawal. Now no member will be allowed to withdraw the entire amount of his Eligible Member Balance. Every employee will have to reserve at least 25% of the amount in his PF account, while only a maximum of 75% can be withdrawn.

How much money will you be able to withdraw from ₹1 lakh PF balance?

Understand this with an easy example. If an employee has an eligible member balance of ₹ 1 lakh in his PF account, then under the new rule it will be mandatory to leave ₹ 25 thousand in the account. In such a situation, the employee will be able to withdraw only a maximum of ₹ 75 thousand. This rule will be applicable to the total eligible balance made by combining the contributions of both the employee and the employer.

For what needs will you be able to withdraw PF money?

Under the new EPF Scheme 2026, employees can make partial withdrawals for many important needs. This includes needs like buying a house or flat, buying a plot, building a house, repaying a home loan, repairing the house, serious illness, children’s education and marriage. In all these cases, advance can be withdrawn from PF as per eligibility.

Those working for less than 1 year will also get relief

In the new system, provision has also been made for those employees who have worked for less than 12 months. If an employee leaves the job before the completion of one year, he can still claim partial withdrawal from his PF account under the prescribed conditions. This rule has been made more flexible than before.

How to do PF Withdrawal online

To withdraw PF, first login to the Unified Member Portal of EPFO. After logging in with UAN, password and OTP, go to Online Services and select Form-31, Form-19 or Form-10C. After this, verify the bank account, reason for withdrawal and fill the necessary information. After verification with Aadhaar OTP, your claim will be submitted online.

Why did the government make this change?

The government says that the objective of the new EPF Scheme 2026 is to provide financial assistance to the employees in times of need, but at the same time to ensure that they do not spend their entire savings before retirement. Keeping 25% of the amount safe in the account will ensure security of the employees’ future and retirement fund.

Will in-hand salary be affected?

This change will not have any impact on the in-hand salary of the employees or the PF contribution deducted every month. Deduction of PF from salary will continue as before. The new rule will be applicable only when an employee applies for advance or partial withdrawal from his EPF account.