New EPF Scheme 2026 Comes into Force: Key Changes Explained

The Centre has notified the Employees’ Provident Fund (EPF) Scheme, 2026, replacing the EPF Scheme, 1952 under the Social Security Code, 2020. While the scheme came into force upon its Gazette notification on June 29, its implementation has gained attention from July 1 as the new rules begin to be reflected in EPF processes.

While the new framework retains the core structure of the provident fund system, it introduces several changes to make EPF services more digital, transparent, and user-friendly.

The revised scheme simplifies claim processing, reduces paperwork, and offers greater flexibility in accessing provident fund savings. Under the new rules, PF withdrawal claims must be settled within three days, while pension and Employees’ Deposit-Linked Insurance claims have to be processed within 20 days.

Among the key changes are revised rules for partial withdrawals, mandatory KYC requirements, and more flexibility in voluntary provident fund (VPF) contributions.

Partial PF Withdrawals Get More Flexible

The biggest change under the new scheme is the revised partial withdrawal framework.

After completing 12 months of service, EPF members can withdraw up to 100% of their eligible balance. However, for members with less than 12 months of service, partial withdrawals are permitted for eligible purposes, provided at least 25% of the EPF balance remains in the account.

Also Read: EPFO 3.0: UPI & ATM PF Withdrawals Likely by June-End

For example, if a subscriber has ₹1 lakh in the EPF account, they can withdraw up to ₹75,000, while ₹25,000 must remain as the minimum balance.

The move is expected to improve financial flexibility by allowing members easier access to their savings without leaving employment.

When Can You Withdraw PF?

EPF members who have completed 12 months of membership can withdraw up to 100% of their eligible balance for medical treatment, higher education, marriage, housing-related needs, and other special circumstances prescribed under the scheme.

Members leaving employment, however, can withdraw their eligible balance even before completing 12 months of membership, subject to the conditions specified under the EPF Scheme, 2026.

Employees can continue to use Form 31 for partial withdrawals while in service for approved purposes such as medical emergencies, education, marriage, and housing.

Full PF withdrawal (Form 19) will continue to be allowed only after leaving employment and completing two months of unemployment.

Other Key Changes

The EPF Scheme, 2026 also introduces a few important operational changes:

Mandatory KYC: Members must update Aadhaar, PAN and an Aadhaar-linked bank account to enable digital claim processing.
Higher VPF Contribution: Employees can contribute beyond the existing 12% level under the Voluntary Provident Fund (VPF), while employers may also make matching voluntary contributions.
Digital-First Services: The scheme focuses on faster online processing and reduced paperwork.

Also Read: EPFO: Contributions Above ₹1,800 Become Voluntary

What Remains Unchanged?

Several core features of the EPF system remain intact.

Provision	Status
Employee contribution	12% of wages
Employer contribution	12% of wages
UAN	No change
Existing EPF accounts	Automatically covered under the new scheme
EDLI insurance	No change (₹50,000 to ₹7 lakh cover)

Existing subscribers do not need to take any action to shift to the new scheme. Their EPF accounts, accumulated savings, and Universal Account Number (UAN) will continue without interruption.

What It Means for Employees

The EPF Scheme 2026, is primarily an administrative upgrade rather than a major policy overhaul. While contribution rates and retirement benefits remain unchanged, the revised rules make it easier for employees to access their provident fund savings, complete claims digitally and manage their accounts with fewer procedural hurdles.

The changes are expected to improve convenience while keeping the long-term objective of retirement savings intact.

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