New Delhi2 hours ago
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Working people will now be able to withdraw up to 100% of the eligible amount of 75% from their PF account for needs such as illness, education, marriage and housing. The central government has now implemented a new EPF scheme in the country from June 29 under the Social Security Code, replacing the old 1952 system.
Explain in simple terms what impact this change will have on your PF balance and withdrawals.
Question 1: What new rule regarding PF has been introduced by the government?
reply: The Central Government has now notified the “EPF Scheme 2026” instead of the old “EPF Scheme 1952”. At the same time, changes have been made to the conditions for partial withdrawal for PF subscribers.
Question 2: What is the most important change regarding partial withdrawals?
reply: As per the new rules, now no EPFO member will be able to withdraw all the money from their PF account in the form of partial withdrawal. Customers will now be required to maintain at least 25% of the total ‘eligible participant balance’ in their PF account.
Question 3: What is the mathematical understanding of this 25% minimum balance rule?
reply: This can be understood with a simple example. If the eligible participant’s total balance in the employee’s PF account is Rs 1 lakh, then as per the new rule, Rs 25 lakh (25%) will have to be kept in the account. Withdrawal of this amount is not possible. After this, only the remaining 75 thousand (75%) will be able to withdraw.
You can withdraw PF by following these simple steps
- To withdraw PF, the employee will first have to go to the official website of the ETF.
- Once the site opens, you will need to enter the UAN, password and captcha on the right side. After which you will receive an OTP, fill it and submit.
- On the next page, go to the Online Services tab and select Form (Form-31,19 and 10C) from the drop-down list.
- Here you will need to enter your bank account number, confirm it and submit it further.
- On the next page, select Form No. 31. After that, on the next page, you will need to fill out information about how much money you need to withdraw, why you need to withdraw it, and your address.
- After checking these details, your claim will be submitted as soon as you click on “Get OTP Aadhaar”.
Question 4: Will this minimum balance rule apply only to the employee’s share or also to the employer’s share?
reply: This rule applies equally to both. As per the definition of the scheme, the ‘Eligible Member’s Balance’ is calculated by combining the contributions of both the employee and the employer. After the mandatory deduction of 25% of the total amount of both funds, only the remaining amount will be considered eligible for withdrawal.
Question 5: For what important purposes is a partial exit from the Pension Fund possible under the new scheme?
reply: In the EPF Scheme 2026, participants are allowed partial withdrawal for many needs. This includes work related to building or purchasing a home. Members can withdraw money to buy a house or apartment, buy a lot to build a house on, build a new home, pay off a mortgage, or renovate or improve a home. Apart from this, you will also be able to withdraw money for needs such as illness, education and marriage.
Question 6: If an employee has not served 12 months (1 year), can he withdraw the money?
reply: Yes, the amended rules also have a special provision for this situation. If an employee resigns from his job after less than 12 months of service, he can also request partial withdrawal from his PF account subject to the specified conditions. The rules are a little more flexible than before.
Question 7: What is the main objective of the government behind the implementation of this new scheme “EPF Scheme 2026”?
reply: This new scheme has a dual purpose. The first goal is to enable employees to easily get paid when needed during their work. The second and most important goal is to ensure that employees do not withdraw their entire amount prematurely so that their savings remain secure after retirement.
Question 8: Will this change affect employees’ wages or monthly contributions?
reply: No, this change will not have a direct impact on your monthly PF amount, deducted or salary in hand. Pension Fund contributions from your salary will continue as before. The new rule only applies if you apply for an early or partial withdrawal of the funds you deposited.
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