New EPF Scheme 2026 Introduces Changes to Partial Withdrawals

The newly implemented Employees’ Provident Fund (EPF) Scheme, 2026, introduces significant changes to the rules surrounding partial withdrawals. Members are now required to maintain a minimum balance of 25% of their eligible balance before making any withdrawals. The scheme also expands the reasons for which members can withdraw funds, including housing-related expenses and personal emergencies. Additionally, a new facility allows for direct withdrawals into bank accounts via UPI, enhancing accessibility for over seven crore members. EPFO is also set to launch WhatsApp services for improved communication and support. Read on to learn more about these important updates.

By Narendra Chaudhary Jul 2, 2026, 12:35 IST

Overview of the New EPF Scheme

Representational Image(Photo: @krishtalkz/X)

New Delhi, July 2: The recently announced Employees’ Provident Fund (EPF) Scheme, 2026, has introduced updated rules regarding partial withdrawals, effective from June 29.

Minimum Balance Requirement

According to the updated scheme, members of the Employees’ Provident Fund Organisation are required to maintain a minimum balance of 25% of their eligible member balance in their EPF account prior to making any partial withdrawals. This minimum balance will be deducted from the total balance when calculating the amount available for withdrawal.

This requirement applies to contributions made by both employees and employers. For instance, if an account has an eligible balance of Rs 1 lakh, Rs 25,000 must be kept as a minimum balance, allowing Rs 75,000 to be withdrawn in accordance with the scheme's stipulations.

The term ‘eligible member balance’ refers to the amount remaining after the mandatory 25% minimum balance is set aside.

Expanded Reasons for Withdrawals

The new regulations have broadened the scope of permissible reasons for making partial withdrawals. Housing-related reasons now include purchasing a house or flat, acquiring land for construction, building a home, repaying housing loans, and undertaking repairs or renovations.

Members can withdraw up to 100% of their eligible balance for expenses related to health issues, education, and marriage.

Additionally, partial withdrawals can be initiated after completing 12 months of service, and no further justification is needed for withdrawals under special circumstances.

New Withdrawal Facility and Services

The Employees’ Provident Fund Organisation (EPFO) has successfully tested a new feature that enables subscribers to directly transfer their provident fund savings into their bank accounts via the Unified Payments Interface (UPI).

This initiative is part of EPFO's larger effort to enhance service delivery and facilitate easier access to provident fund savings for over seven crore members.

Moreover, EPFO plans to introduce member services through WhatsApp within the next month to improve outreach and address grievances. Subscribers will be able to start conversations with EPFO by sending a simple 'Hello' message to the organisation’s verified WhatsApp number.

This platform will provide members with access to services such as checking their PF balances, reviewing the last five transactions, and tracking the status of claims. Communication will be available in various regional languages to enhance accessibility and user experience.