The Central Government has introduced the Employees’ Provident Funds Scheme, 2026 under the Code on Social Security, 2020.
The new rules aim to make PF withdrawals simpler while ensuring that people continue to save enough money for retirement.
Under the new EPF scheme, several old withdrawal rules have been merged into a simpler system with fewer categories, clearer limits, and easier eligibility conditions.
PF Withdrawal Rules Divided Into 3 Simple Categories
Earlier, EPF withdrawals had different rules for medical treatment, marriage, education, home purchase, home loan repayment, house repairs, and other situations.
The new scheme has combined these 13 separate withdrawal provisions into just three major categories:
Essential needs – Includes illness, education, and marriage.
Housing requirements – Includes buying a house, construction, renovation, and home loan repayment.
Special circumstances – Covers other situations where withdrawal is allowed.
This change is expected to make the withdrawal process easier for EPF members.
Only 12 Months of Membership Needed for Most Withdrawals
Under the previous EPF rules, different withdrawals required different service periods.
However, under the new EPF Scheme 2026, members can become eligible for most partial withdrawals after completing 12 months of total EPF membership.
This means withdrawals related to:
Medical emergencies
Education
Marriage
Housing needs
can generally be accessed after one year of membership.
New Concept of Eligible Member Balance
The new scheme introduces the term “Eligible Member Balance”.
According to the new rules, EPF members must keep at least 25% of their total EPF savings in their account after making a withdrawal.
This minimum balance includes:
Employee contributions
Employer contributions
Interest earned on EPF savings
The amount available for withdrawal after keeping this mandatory balance is called the Eligible Member Balance.
100% Withdrawal Allowed for Medical, Education and Marriage Needs
For essential needs like illness, education, and marriage, members can withdraw up to 100% of their Eligible Member Balance after completing 12 months of EPF membership.
The withdrawal limits include:
Medical treatment: Up to 100% of eligible balance.
Education: Withdrawal allowed up to 10 times during membership.
Marriage: Withdrawal allowed up to 5 times during membership.
This gives members more flexibility during important life events.
New Housing Withdrawal Rules Under One Category
The new EPF scheme has combined all housing-related withdrawals into a single category.
Earlier, separate rules existed for:
Buying land or a house
Constructing a house
Home renovation
Repaying a home loan
Now, members can withdraw up to 100% of their Eligible Member Balance for housing needs after completing 12 months of membership.
Such withdrawals can be made up to five times during the entire membership period.
Withdrawal Allowed in Special Situations
The new rules also provide withdrawal benefits during special circumstances.
Members can withdraw up to 100% of their Eligible Member Balance after completing 12 months of EPF membership.
However, this type of withdrawal can be used only up to two times during the membership period.
PF Withdrawal After Leaving a Job
The new scheme also provides relief to people who leave their job before completing 12 months of EPF membership.
Such members can still make a partial withdrawal, but the amount will be limited to their Eligible Member Balance available on the withdrawal date.
Overall, the EPF Scheme 2026 aims to simplify withdrawal rules while maintaining a balance between immediate financial needs and long-term retirement savings.
