New EPF Scheme 2026 comes into effect: Here's what changes and what remains the same for EPFO subscribers, explained

The new Employees' Provident Fund (EPF) Scheme 2026 has come into effect this week and introduced a slew of changes for EPF subscribers, including updated rules for partial withdrawals. Notified by the Centre as part of its implementation of the Social Security Code 2020, it replaces the erstwhile EPF Scheme 1952.

The new EPF Scheme is in line with the existing provident fund framework and retains the core structure while enhancing digital compliance, improving transparency, reducing paperwork, supporting the updated labour codes and simplifying processes.

Overall, it aims to improve financial flexibility for the users while allowing better access to funds even before leaving employment. Today, we explore and explain how and what has changed for EPFO subscribers and what remains the same.

EPF Scheme 2026: What has changed for you?

• Partial withdrawals allowed: The new rules allow partial withdrawals for members for a number of reasons, with a mandate for 25% minimum balance to be maintained in your EPF account. In effect, subscribers can withdraw between 50% and 75% of their corpus. For example, a subscriber with ₹1 lakh total balance (employee and employer contributions), is eligible to withdraw up to ₹75,000 as partial withdrawal while keeping ₹25,000 as minimum balance in the EPF account.
• Conditions for partial withdrawals: The new scheme provides a number of conditions under which you are eligible to withdraw partial funds from your EPF account — i.e. medical treatment, education, marriage, housing, etc. (Check full table below for details).

• Higher voluntary contribution: The scheme allows employees to increase their voluntary provident fund (VPF) contribution above the previous 12% ceiling, with employers having the option to make matching contributions. It adds that these are not permanent and can be reduced or discontinued later by both parties.
• KYC made mandatory: The EPF Scheme, 2026 requires members to provide their Aadhaar, PAN and Aadhaar-linked bank account details to enable digital processing of claims and other services. This is to ensure online claims for partial withdrawal, and other services are seamless.
• Withdraw PF while still employed: You can withdraw PF partially while employed via Form 31 (Advance) for specific purposes: medical emergency / treatment, marriage (self / children), house purchase or construction. However, full withdrawal (Form 19) is only allowed after leaving service — resignation + 2 months unemployment.

EPFO: What are the eligible reasons for partial withdrawal?

The new EPF Scheme 2026 lists several conditions under which a subscriber is eligible for partial withdrawal. Check the same as detailed below:

EPFO: What has not changed for EPF subscribers?

• No need to apply for transition: The new scheme ensures a smooth transition for existing EPF subscribers, who will automatically become members under the EPF Scheme, 2026. There will be no impact on their accumulated corpus, and eligible new employees will continue to be brought under EPF coverage.
• Mandatory contribution unchanged: The mandatory EPF contribution remains unchanged at 12% of wages each from the employee and employer, while the existing 10% rate will continue to apply to notified establishments. It also retains the statutory wage ceiling, meaning mandatory EPF contributions for employees earning above the notified wage limit will be calculated only up to that ceiling.

• No change to UAN: Notably, the Universal Account Number (UAN) will remain unchanged and continue to serve as the permanent identifier for every EPF member, ensuring seamless portability of accounts when employees change jobs.
• No change for insurance: The new scheme does not alter benefits under the Employees’ Deposit Linked Insurance (EDLI) scheme. The nominees and legal heirs are assured a minimum of ₹50,000 and a maximum of ₹7 lakh insurance payout in case of death of the account holder.