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EPF Scheme 2026: The Employees Provident Fund Scheme 2026 has made a major change in the way Employees Provident Fund (EPF) members can withdraw their savings while on the job.

Unlike the old system, under the new scheme, members are required to maintain at least 25% of their accumulated EPF balance after making partial withdrawal. This means that members can only withdraw their ‘Eligible Member Balance’ which is calculated after excluding the mandatory minimum balance.

This provision is part of the Employees Provident Fund Scheme 2026 notified by the Ministry of Labor and Employment under the Social Security Code 2020.

What is the new 25% minimum balance rule?

There are two main definitions given in this new scheme:

First minimum balance means 25% of the total amount deposited in the member’s account. This total amount includes the contribution of both the employee and the employer as well as the interest accumulated till the date of withdrawal.

Secondly, Eligible Member Balance means the balance that remains after deducting this mandatory minimum balance. This is the amount which can be partially withdrawn for specific purposes subject to certain conditions.

In fact, as long as a member remains in employment, at least one-fourth of the deposited EPF fund generally remains locked in the account and continues to earn interest on it.

How is it different from the earlier EPF scheme?

Employees Provident Fund Scheme 2026 also makes the process of withdrawing money easy.

Instead of various rules to advance (withdrawal of money) under the 1952 scheme, in the new system withdrawal of money has been divided into three main groups. Additionally, it allows members to withdraw up to 100% of their eligible balance for specific purposes such as medical treatment, education, marriage, housing and other specified purposes, after completing the required membership period.

The minimum balance requirement applies only to partial withdrawals during employment.

This restriction does not apply to final settlement claims such as retirement on completion of prescribed age, total and permanent disability or other situations in which complete withdrawal of the provident fund balance under the scheme is permitted. In such cases, members can withdraw the entire amount deposited in their account as per the terms and conditions of the scheme.

What does this mean for EPF subscribers?

The new framework changes the way in which members can withdraw money from their provident fund (PF) while on the job.

Earlier, members could withdraw a large part of their EPF savings by taking repeated advances subject to fulfillment of certain conditions. Under the new scheme, every time you withdraw money, it is necessary to maintain at least 25% of the total deposited amount as balance.

As a result, a portion of the retirement savings remains invested in the EPF account and receives annual interest till final settlement, while the member can use the remaining eligible amount for specific needs.

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