Being the most prominent retirement fund in India, the Employees’ Provident Fund (EPF) impacts crores of employees from organised sector establishments across India. However, EPF account holders are often unaware or confused about partial and full withdrawal rules of their provident fund. Many times they don’t know about how their fund for Employees’ Pension Scheme (EPS) is accumulated. Ever since the government has implemented the EPF Scheme, 2026, EPF account holders are keen to know if it has made any changes to withdrawal rules. During the ongoing Lok Sabha monsoon session in Parliament, Kirti Azad, member of Parliament, also asked the government about the partial and full withdrawal of EPF funds under the 2026 EPF scheme.
Azad also asked if the government has received objections from employees or other representatives about the withdrawal rules where employees need to wait for 36 months for the withdrawal of funds.
Minister explains EPFO withdrawal rules
Highlighting the latest EPF withdrawal rules, Shobha Karandlaje, Minister of State for Labour and Employment, said that the EPFO has introduced a 12-month waiting period for premature final EPF settlement and a 36-month waiting period for withdrawal benefits under the Employees’ Pension Scheme (EPS).
The minister said that at the same time, the EPFO has also simplified and liberalised the rules for partial withdrawals and advances. The minister said:
“The EPFO has simultaneously liberalised and simplified partial withdrawals and advances. Members can withdraw up to 75% of their balance under three broad heads—essential needs, housing needs and special circumstances.”
According to Karandlaje, these provisions allow EPF members to access their PF savings for unemployment-related expenses, medical emergencies, education, housing and other critical requirements.
When can EPF members withdraw up to 75% funds twice a year?
Karandlaje says members can also withdraw up to 75% of their EPF balance twice a year under special circumstances without assigning any reason.
EPF advances under EPF 2026 scheme
Education: Up to 10 times during EPF membership
Marriage: Up to 5 times during EPF membership
Illness: No limit
Housing: Up to 5 times during EPF membership
Eligibility: 12 months or more EPF membership
Eligible Amount: Up to 75% of employee and employer contribution with interest
EPFO withdrawal rules: Were the changes reviewed?
The government was also asked whether it had conducted any review or consultation to assess the impact of new EPF withdrawal rules on workers’ financial security and liquidity.
In its response, the minister said that the Central Board of Trustees (CBT), EPF includes representatives from recognised trade unions, employer associations, and the Central and state governments.
“All the above amendments were placed in the 238th meeting of the CBT wherein the same were discussed and deliberated in detail before recommending the same to the Government of India for notifying the amendments.”
EPF withdrawal rules for unemployment member
Employees who become unemployed can now withdraw up to 75% of their PF balance immediately after losing their job. The change is aimed at providing quick financial support during unemployment, allowing workers to access their savings without lengthy waiting periods or cumbersome procedures.
Service requirement for PF withdrawals
The minimum service requirement for several advance withdrawals has been lowered to 12 months from as much as seven years. This makes it easier for employees, especially younger workers, to access their PF savings when they need financial support.
