New Delhi, July 2: The Employees’ Provident Fund Organisation (EPFO) has brought into force the revised Employees’ Provident Fund (EPF) Scheme, 2026, introducing a mandatory minimum balance requirement for partial withdrawals while expanding the list of eligible withdrawal purposes and strengthening digital services for subscribers. The revised provisions came into effect on June 29 and apply to EPF members across the country.
Under the newly notified rules, EPF subscribers must retain at least 25 per cent of their eligible member balance in their provident fund accounts before making any partial withdrawal. The retained amount will be excluded from withdrawal calculations, with the remaining balance becoming available subject to the conditions prescribed under the scheme.
The revised framework applies to both employee and employer contributions. For instance, if an EPF account has an eligible balance of Rs 1 lakh, a minimum of Rs 25,000 must remain in the account, allowing withdrawals only from the remaining Rs 75,000, subject to applicable provisions.
The scheme defines the “eligible member balance” as the amount remaining after deducting the compulsory minimum balance that must be retained in the account.
The revised EPF Scheme has also widened the list of purposes for which subscribers can make partial withdrawals. Members will be allowed to withdraw funds for housing-related needs, including purchasing a house or flat, buying a plot for construction, constructing a home, repaying a housing loan, and undertaking repairs or improvements to an existing house.
In addition, subscribers can withdraw up to 100 per cent of their eligible member balance for specified purposes such as medical treatment, education and marriage expenses. The revised provisions also permit partial withdrawals after completing 12 months of service, while withdrawals under special circumstances will not require additional explanations from members.
Alongside the policy changes, EPFO is expanding its digital service delivery mechanisms. The organisation has completed testing of a new facility that will enable subscribers to transfer provident fund withdrawals directly into their bank accounts through the Unified Payments Interface (UPI). The initiative forms part of EPFO’s efforts to simplify access to provident fund savings for more than seven crore members.
The organisation is also preparing to introduce member services through WhatsApp within the next month. Under the proposed facility, subscribers will be able to begin interactions by sending a “Hello” message to EPFO’s verified WhatsApp number.
The planned WhatsApp platform will allow members to check their provident fund balance, view the last five account transactions and monitor the status of claims. The services will also be made available in regional languages to improve accessibility and make the platform easier to use for subscribers across the country.
The revised EPF Scheme combines stricter safeguards for maintaining retirement savings with expanded withdrawal flexibility and enhanced digital access, marking a significant update to the country’s provident fund framework.
