If you work and PF is deducted from your salary every month, then this news is very important for you. The government has made a major change in the rules for withdrawing money from PF under the Employees’ Provident Fund (EPF) Scheme, 2026. According to the new rule, if an employee withdraws money from his PF account during employment, then he is required to leave at least 25% of the amount in his account. This means that now employees will not be able to use their entire PF balance at once.
This new rule is part of the EPF Scheme 2026 implemented under the Code on Social Security, 2020. The government says that its objective is to protect the savings of employees for retirement, so that future savings are not completely wiped out due to frequent withdrawals during employment.
Employees will be able to withdraw this much money
Two new words have been added in the new scheme. The first is ‘Minimum Balance’, which means that 25% of the total amount deposited in the employee’s PF account will remain in the account in any case, which includes the contribution of both the employee and the company as well as interest. The second is ‘Eligible Member Balance’, that is, the amount that is left after setting aside 25% of the amount, the employee will be able to withdraw the same amount if needed.
Understand the calculation here
For example, if an employee has Rs 10 lakh deposited in his PF account, then it will be necessary to keep Rs 2.5 lakh (25%) in the account. In such a situation, the employee will be able to withdraw only a maximum of Rs 7.5 lakh, that too as per the rules and conditions set by EPFO. However, this rule will apply only to partial withdrawals made during employment. If the employee retires, completes the prescribed age, becomes permanently unable to work or in any other case where full withdrawal of EPF money is allowed, then he will be able to withdraw the entire amount deposited in his account. In such cases the condition of maintaining 25% balance will not be applicable.
What is the benefit of employees?
In the new EPF scheme, the withdrawal process has also been made easier than before. Earlier there were different rules for different needs, but now the rules for withdrawal for needs like medical treatment, children’s education, marriage, buying or building a house have been simplified. For these purposes, employees will be able to withdraw money from their balance after fulfilling the prescribed conditions. This change can prove beneficial for the employees in the long run. With this, they will have adequate savings at the time of retirement and will also continue to get interest on the amount remaining in the account.
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