EPFO members will now have to keep a minimum balance in their provident fund accounts before making partial withdrawals, under the Employees’ Provident Fund (EPF) Scheme, 2026 notified by the Centre.
The revised framework, which came into effect on June 29, changes how eligible withdrawal amounts are calculated and also widens the circumstances under which EPFO members can make partial withdrawals.
EPF Scheme 2026 introduces 25% minimum balance rule
Under the new scheme, members of the Employees’ Provident Fund Organisation (EPFO) must retain at least 25 per cent of their eligible member balance in their EPF account before any partial withdrawal is processed.
The rule applies to both employee and employer contributions.
For instance, if an EPF account has an eligible balance of Rs 1 lakh, Rs 25,000 must remain in the account. The remaining Rs 75,000 can be considered for withdrawal, subject to the applicable conditions.
The scheme defines the “eligible member balance” as the amount available after setting aside the mandatory 25 per cent balance.
More reasons now allowed for EPF partial withdrawals
The notified scheme also broadens the list of situations in which members can access their provident fund savings.
Housing-related purposes include purchasing a house or flat, buying a plot to build a home, constructing a house, repaying a home loan, and carrying out repairs or improvements to a residential property.
Members can withdraw up to 100 per cent of their eligible balance for expenses related to illness, education and marriage.
The scheme also allows partial withdrawals after 12 months of service. In certain special circumstances, members will not be required to provide additional explanations while applying for withdrawals.
EPFO preparing UPI, WhatsApp-based member services
Separately, EPFO has completed testing of a facility that will enable subscribers to receive provident fund withdrawals directly into their bank accounts through the Unified Payments Interface (UPI).
The initiative is part of EPFO’s broader effort to simplify access to provident fund savings and improve service delivery for its more than seven crore members.
The organisation is also planning to introduce member services on WhatsApp within the next month.
Under the proposed system, subscribers will be able to start a conversation with EPFO by sending a “Hello” message to its verified WhatsApp number. The service is expected to provide facilities such as checking PF balances, viewing the last five transactions and tracking claim status. It will also support regional languages to improve accessibility.