Centre Notifies New EPF Scheme, Updates Partial Withdrawal Norms

The newly notified Employees’ Provident Fund (EPF) Scheme, 2026, introduced new provisions on partial withdrawals effective June 29.

Under the revised scheme, members of the Employees’ Provident Fund Organisation must retain a minimum balance of 25 per cent of their eligible member balance in their EPF account before making any partial withdrawal. Any amount calculation for a minimum withdrawal will be done only after setting this balance aside.

The minimum balance requirement applies to both employee and employer contributions. For example, an account with an eligible balance of Rs 1 lakh must retain Rs 25,000, leaving Rs 75,000 available for withdrawal subject to the scheme’s rules.

The scheme defines ‘eligible member balance’ as the amount available after deducting the compulsory 25 per cent minimum balance.

The new regulations expanded the list of permissible reasons for partial withdrawals.

Housing-related withdrawals include buying a house or flat, purchasing a plot for construction, building a home, repaying a housing loan and carrying out repairs or improvements.

Partial withdrawal of up to 100 per cent of eligible balance is allowed to cover expenses like illness, education, and marriage.

Partial withdrawals can now be made after 12 months of service, and withdrawals under special circumstances require no additional explanation.

The Employees’ Provident Fund Organisation (EPFO) has completed testing for a new facility that will allow subscribers to withdraw their provident fund savings directly into their bank accounts through the Unified Payments Interface (UPI).

The move is part of a broader push by EPFO to improve service delivery and simplify access to provident fund savings for over seven crore members.

EPFO has also planned to roll out member services through WhatsApp within the next month to improve outreach and grievance redressal. Under the proposed facility, subscribers will be able to initiate conversations with EPFO by sending a 'Hello' message to the organisation’s verified WhatsApp number.

The platform will allow members to access services such as checking PF balances, viewing the last five transactions and tracking claim status. Communication will be available in regional languages to improve accessibility and user comfort.