New Delhi14 minutes ago
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Now employed people will be able to withdraw up to 100% of the eligible 75% amount from their PF account for needs like illness, education, marriage and home. The Central Government has now implemented the new EPF scheme in the country from June 29 under the Social Security Code, replacing the old system of 1952.
Understand in simple language what effect this change will have on your PF balance and withdrawal.
Question 1: Which new rule related to PF has been implemented by the government?
answer: The Central Government has now notified ‘EPF Scheme 2026’ in place of the old ‘EPF Scheme 1952’. Under this, changes have been made in the conditions of partial withdrawal for PF subscribers.
Question 2: What is the most important change regarding partial withdrawal?
answer: Under the new rules, now no EPFO member will be able to withdraw the entire money from his PF account in the form of 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 the total eligible member balance in an employee’s PF account is Rs 1 lakh, then according to the new rule it will be mandatory to leave Rs 25 thousand (25%) in the account. Withdrawal of this amount will not be allowed. After this, only the remaining 75 thousand (75%) will be able to be withdrawn.
You can withdraw PF through these easy steps
- To withdraw PF, the employee will first have to login to the official website of EPFO https://unifiedportal-mem.epfindia.gov.in/memberinterface/.
- As soon as the website opens, you will have to enter UAN, password and captcha on the right side. After which you will get OTP, fill it and submit.
- On the next page click on Online Services tab and select Form (Form-31,19 and 10C) from the drop-down list.
- Here you will have to fill your bank account number, verify it and submit further.
- Select Form No. 31 on the next page. After this, on the next page you will have to fill details like how much money to withdraw, why you have to withdraw it and your address.
- After verifying these details, your claim will be submitted as soon as you click on Get Aadhaar OTP.
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. As per the scheme definition, the ‘Eligible Member Balance’ is calculated by combining the contributions of both the employee and the employer. After making a mandatory deduction of 25% from the total sum of both the funds, only the remaining amount will be considered eligible for withdrawal.
Question 5: For which important purposes, partial withdrawal from PF can be made under the new scheme?
answer: In the EPF Scheme 2026, members are allowed partial withdrawal for many needs. This includes work related to building or buying a house. Members can withdraw money for purchasing a house or flat, purchasing a plot for house construction, constructing a new house, repayment of home loan and repair or improvement of the house. Apart from this, you will also be able to withdraw money for needs like illness, education and marriage.
Question 6: If an employee has not completed 12 months (1 year) of service, can he withdraw the money?
answer: Yes, special provision has been made for this situation also in the amended rules. If an employee leaves the job after less than 12 months of service, he can also claim partial withdrawal from his PF account subject to the specified terms and conditions. The rules have been made a little more flexible than before.
Question 7: What is the main objective of the government behind bringing this new scheme ‘EPF Scheme 2026’?
answer: This new scheme has a dual purpose. The first objective is to enable employees to easily get money when needed during their job. The second and most important objective is to ensure that employees do not withdraw their entire amount prematurely, so that their savings remain safe for post-retirement.
Question 8: Will this change have any impact on the in-hand salary or monthly contribution of employed people?
answer: No, this change will not have any direct impact on your monthly PF amount deducted or in-hand salary. PF contribution from your salary will continue as before. This new rule is effective only in case you apply for advance or partial withdrawal of money from your deposited funds.
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