Withdraw 75% of PF balance after getting fired from job:EPFO likely to roll out new features from tomorrow

Now salaried people can withdraw up to 100% of the eligible 75% amount from their PF account for needs like unemployment, illness, education, marriage and house related expenses. The central government has replaced the old 1952 system and implemented the new EPF Scheme in the country from 29 June under the Social Security Code. Understand in simple language what impact this change will have on your PF balance and withdrawal: Question 1: What new rule related to PF has the government implemented? Answer: The central government has now notified the ‘EPF Scheme 2026’ in place of the old ‘EPF Scheme 1952’. Under this, changes have been made in the conditions for partial withdrawal for PF subscribers. Question 2: What is the main change regarding partial withdrawal? Answer: Under the new rules, now no EPFO member will be able to withdraw the entire amount from their PF account as partial withdrawal. Now customers will have to keep at least 25% of the total ‘eligible member balance’ in their PF account. Question 3: How to understand this 25% minimum balance rule mathematically? Answer: This can be understood with a simple example. If an employee has a total eligible member balance of 1 lakh rupees in their PF account, then according to the new rule, 25 thousand (25%) will be mandatory to leave in the account. This amount will not be allowed to be withdrawn. After this, the remaining 75 thousand (75%) can be withdrawn. You can withdraw PF through these easy steps Question 4: Will this minimum balance rule apply only to the employee’s share or also to the employer’s share? Answer: This rule will apply equally to both. According to the scheme’s definition, ‘Eligible Member Balance’ is calculated by combining the contributions of both employee and employer. Only the amount remaining after the mandatory deduction of 25% from the total sum of both funds will be considered eligible for withdrawal. Question 5: Under the new scheme, for which essential purposes can partial withdrawal from PF be made? Answer: In the EPF Scheme 2026, members are allowed partial withdrawal for several needs. This includes work related to building or buying a house. Members can withdraw money for buying a house or flat, purchasing a plot for house construction, building a new house, home loan repayment, and house repair or renovation. Apart from this, money can also be withdrawn for needs like illness, education, and marriage. Question 6: If an employee has not even completed 12 months (1 year) of service, can they withdraw money? Answer: Yes, special provisions have been made for this situation in the revised rules. If an employee leaves the job after less than 12 months of service, they can also claim partial withdrawal from their PF account subject to specified conditions and rules. The rules have been made slightly more flexible compared to earlier. Question 7: What is the main objective of the government behind introducing this new scheme ‘EPF Scheme 2026’? Answer: This new scheme has a dual objective. The first objective is to ensure that employees can easily access money when needed during their employment. The second and most important objective is to ensure that employees do not withdraw their entire amount prematurely, so that their savings remain secure for after retirement. Question 8: Will this change have any impact on the in-hand salary or monthly contribution of working people? Answer: No, this change will not have any direct impact on your monthly PF deduction or in-hand salary. The PF contribution from your salary will continue as before. This new rule only becomes effective when you apply to withdraw an advance or partial amount from your accumulated fund.