Under the new Employees’ Provident Fund (EPF) Scheme, 2026, partial withdrawals have been streamlined, making it easier for members to tap into their PF savings for specific life events while still preserving a retirement corpus.
The revised rules, which came into effect on June 29, 2026, introduce a new concept of maintaining a minimum EPF balance in the account, which comprises both the employee’s and employer’s contributions while determining the balance that must remain in the account.
Here’s a look at five common situations where you can make a partial EPF withdrawal and how much you may be able to withdraw.
New EPF rules 2026
Under the new EPF Scheme, 2026, members can make partial PF withdrawals for specific purposes, subject to eligibility conditions. A key change is that 25% of the total EPF balance must remain in the account, and the withdrawal amount is calculated from the remaining 75% (defined as the ‘Eligible Member Balance’). According to Balasubramanian A, Senior Vice President, TeamLease Services, here are the 5 common situations where you can make a partial EPF withdrawal and how much you may be able to withdraw.
1. Housing: Buy/build a house, purchase land, repay a home loan or undertake repairs. Members can withdraw up to 100% of the eligible member balance, subject to prescribed conditions.
2. Medical treatment: Up to 100% of the eligible member balance for self or eligible family members.
3. Education: Up to 100% of the eligible member balance for higher education of self or eligible family members (up to 10 withdrawals during membership).
4. Marriage: Up to 100% of the eligible member balance for self or eligible family members (up to 5 withdrawals during membership).
5. Special circumstances: Up to 100% of the eligible member balance for financial distress or other approved circumstances under the scheme.
Common rule
Members generally need 12 months of EPF membership for partial withdrawals (except specified cases like exit from employment), and 25% of the eligible member balance must remain in the account. The 5-year continuous service rule affects the taxability of withdrawals, not eligibility to withdraw.
How does the new minimum balance requirement affect the amount an EPF member can withdraw?
The new rule requires at least 25% of an EPF member’s total balance to remain in the account after a partial withdrawal. As a result, members can withdraw up to 100% of their eligible balance, which is the amount remaining after setting aside the mandatory 25% balance. This ensures a minimum retirement corpus remains invested while still allowing access to funds for eligible needs.
Has the minimum service requirement for partial withdrawals been reduced or relaxed under the EPF Scheme 2026?
Under the earlier framework, the required service period varied by purpose, ranging from no minimum (for medical emergencies) to 5 or 7 years (for housing, education and marriage).
Under the new scheme, most partial withdrawals are allowed after just 12 months of EPF membership, making it easier for members to access their savings when needed, says Balasubramanian A.
An exception is members leaving employment before completing 12 months of membership, who can make withdrawals under specified conditions.
What documents or proofs are still required while applying for a partial PF withdrawal under the new framework?
Under the EPF Scheme, 2026, the claim process has become simpler, but purpose-specific proof may still be required depending on the type of partial withdrawal.
Typically, members need:
● Aadhaar-linked UAN with completed KYC.
● Verified bank account details linked to the UAN.
● PAN, where applicable, especially for tax compliance.
● Supporting documents, if required for the selected purpose, such as medical records, education admission proof, or housing-related documents.
For online claims, no physical documents are generally required if KYC is complete, though EPFO may seek additional proof in specific cases.
What are the biggest changes in partial PF withdrawal rules under the new EPF Scheme 2026 compared to the earlier framework?
The new EPF Scheme, 2026, doesn’t completely overhaul partial withdrawals, but it simplifies, standardises and expands them compared to the old 1952 framework. According to Balasubramanian A, here are the biggest changes:
| Earlier EPF Scheme (1952) | New EPF Scheme (2026) |
| Around 13 different withdrawal purposes, each with separate eligibility and limits | Consolidated into three broad categories: Essential Needs (illness, education, marriage), Housing, and Special Circumstances, making the rules easier to understand. |
| Different service requirements (2–7 years depending on the purpose) | Uniform 12-month EPF membership for most partial withdrawals, reducing waiting periods. |
| Most advances were limited to the employee’s contribution or purpose-specific formulas (e.g., 50% of employee share, 36× wages) | Members can withdraw up to 100% of the eligible member balance (withdrawable portion comprising employee and employer contributions), subject to purpose-specific conditions. |
| No universal minimum balance requirement | Members must retain at least 25% of the eligible member balance in their EPF account, ensuring a retirement corpus remains intact. |
| Limited withdrawal frequency for some purposes | The new scheme provides clearer withdrawal frequency limits, such as education (up to 10 times) and marriage (up to 5 times) during membership. |
| No dedicated category for financial distress | Introduces a ‘Special Circumstances’ category, allowing withdrawals for specified exigencies under the new framework. |
What hasn’t changed: The 5-year continuous service rule still relates to the taxability of EPF withdrawals, not the eligibility to make a partial withdrawal. Similarly, EPF contribution rates, interest calculation, and UAN portability remain unchanged.
Key takeaway
Employees should treat EPF as a long-term retirement fund and withdraw only when genuinely necessary. Before making a claim, compare other financing options, understand the tax implications if you have less than five years of continuous service, and withdraw only the amount you need. Preserving your EPF corpus today can make a significant difference to your retirement savings in the long run.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Investors should assess their financial goals, risk appetite and consult a qualified financial advisor before making investment decisions.
Every financial journey has a turning point. What’s yours?
Financial Express is launching a new series highlighting real experiences with money, investments, and the taxman. Did a sudden tax rule catch you off guard? Did a piece of financial advice change your life? Your story could provide invaluable, practical lessons for thousands of fellow taxpayers. Share your experience with us. We respect your privacy: no stories will be featured without a direct conversation and your full consent. Thank you.