EPFO New Rules 2026 Explained: What changes for PF withdrawals and contributions

EPFO New Rules 2026 Explained: The Centre has notified the Employees' Provident Fund (EPF) Scheme, 2026, replacing the Employees' Provident Fund Scheme, 1952, as part of the implementation of the Code on Social Security, 2020. The new scheme came into effect on June 29, 2026.

25% minimum balance rule introduced for partial withdrawals

One of the key changes under the EPF Scheme 2026 is the introduction of a minimum balance requirement for partial withdrawals. 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 making a partial withdrawal.

For example, if an EPF member has an eligible balance of Rs 1 lakh, at least Rs 25,000 must remain in the account, while the remaining Rs 75,000 can be withdrawn in accordance with the scheme's provisions. The minimum balance requirement applies to both employee and employer contributions.

Partial withdrawal rules for medical, education, marriage and housing

Under the revised rules, members can make partial withdrawals for medical treatment, education, marriage, housing-related requirements and specified special circumstances, subject to the prescribed conditions.

Members who have completed 12 months of EPF membership can withdraw up to 100 per cent of their eligible member balance for medical treatment, education, marriage, housing-related purposes and specified special circumstances. Housing withdrawals cover the purchase of a house or flat, purchase of a plot for construction, construction of a house, repayment of a housing loan, and repairs or improvements to a house.

Education and marriage withdrawal limits under EPF Scheme 2026

The revised scheme allows withdrawals for education up to 10 times during a member's service and for marriage up to five times during the membership of the fund.

Members leaving employment before completing 12 months of service can also withdraw up to 100 per cent of their eligible member balance under the prescribed conditions. Such withdrawals are limited to two in a financial year.

EPF withdrawal conditions and minimum balance requirement

The scheme provides that withdrawal calculations are subject to maintaining the prescribed minimum balance of 25 per cent of the eligible member's balance.

EPF 2026 contribution rules and salary-based flexibility

The statutory EPF contribution rate remains unchanged at 12 per cent each for employers and employees.

For employees earning up to Rs 15,000 per month, a 12 per cent deduction continues to apply, which amounts to Rs 1,800 per month. For salaries above Rs 15,000 per month, employees may choose how much additional contribution they want to make through voluntary contributions.

Employees can also increase their voluntary contribution if they wish, or reduce and even discontinue extra contributions later. Employers may choose to match these voluntary contributions, but it is not mandatory for them to do so.

In effect, higher-salary employees may have flexibility in deciding additional PF deductions, which can impact their take-home salary, while the statutory contribution remains fixed.

Aadhaar, PAN mandatory for digital EPF services

The EPF Scheme 2026 also requires members to furnish Aadhaar, PAN and Aadhaar-seeded bank account details to facilitate digital processing of claims and other services.

New compliance rules for employers under EPF Scheme 2026

For employers, the scheme introduces additional compliance requirements, including electronic filings, ownership disclosures, contractor-related compliance and obligations for exempted provident fund trusts. Prescribed returns are required to be filed within 15 days.

EPFO UPI-based PF withdrawal facility under testing

Separately, the 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).

EPFO WhatsApp services for PF balance and claim tracking

The organisation is also preparing to roll out member services through WhatsApp, allowing subscribers to check PF balances, view the last five transactions and track claim status through its verified account. The services are expected to be available in multiple regional languages.

EPFO temporary service downtime

The Ministry of Labour and Employment has also announced that EPFO is undertaking a planned database consolidation and software upgrade. During this period, member and employer login services remain temporarily unavailable, with services scheduled to resume by July 3, 2026.