The Employees' Provident Fund Scheme, 2026 took effect on 29 June 2026. It rewrote the withdrawal rules: partial withdrawals now protect a 25% floor, most purposes use a 12-month membership test, and an ordinary full settlement after leaving covered work needs a 12-month wait. Old articles quoting the two-month job-loss rule are now stale.
The takeaway
Quick answer: while you are a member, the Scheme generally keeps 25% of your employee share, employer share and interest locked. You can withdraw up to 100% of the remaining eligible balance for an allowed purpose — not 100% of the whole account.
The new partial-withdrawal limit
Every partial claim must be at least ₹1,000. The protected minimum is 25% of aggregate employee contributions, employer contributions and interest. Your “eligible member balance” is what remains after that floor, so the maximum is normally about 75% of the accumulation before earlier withdrawals.
Employees' Provident Fund Scheme, 2026 · paragraph 46
| Reason | Maximum after 12 months' membership | Frequency limit |
|---|---|---|
| Illness — self or family | 100% of eligible member balance | No cap stated in paragraph 46 |
| Education — self or family | 100% of eligible member balance | 10 during membership |
| Marriage — self or family | 100% of eligible member balance | 5 during membership |
| Home purchase, construction, loan repayment or improvement | 100% of eligible member balance | 5 during membership |
| Special circumstances | 100% of eligible member balance | 2 per financial year |
The count starts afresh from the 2026 Scheme's commencement. The Gazette does not itself say that every “special circumstances” claim is document-free, so do not rely on that social-media shortcut; check the live EPFO claim flow.
What if you leave before 12 months?
Paragraph 46(5) creates an exception for a member who exits employment before completing 12 months: a partial withdrawal can still be made, but it cannot exceed the eligible member balance. That is different from a full and final settlement.
Full EPF settlement after leaving a job
For an ordinary resignation or job loss outside the listed exceptions, full settlement now requires at least 12 continuous months without employment in an establishment covered by the Social Security Code. The old blanket “withdraw after two months unemployed” advice no longer describes the general rule.
- Full withdrawal remains available on retirement after age 55, permanent total incapacity, permanent migration or employment abroad, retrenchment, and an employer-employee voluntary retirement scheme.
- Specific closure, transfer and dismissal situations in paragraph 49 retain a two-month condition.
- The Scheme preserves a no-wait exception for a woman who resigns for marriage.
- Joining another EPF-covered employer? Transfer the balance. Do not wait to cash it out.
Job switch: transfer, do not withdraw
Use the EPFO member portal to transfer the balance to your new UAN-linked account. A transfer preserves compounding and continuous service. Withdrawal eligibility under the EPF Scheme and income-tax treatment are separate tests: a permitted withdrawal before five years of continuous service can still be taxable, subject to the tax rules and exceptions.
Before you submit a claim
- 1.Check your UAN, Aadhaar, PAN, bank account and exit date on the EPFO portal.
- 2.Decide whether you need a transfer, a purpose-based partial withdrawal or a final settlement. They are not interchangeable.
- 3.Use the portal's current form and evidence requirements; the Gazette sets entitlements, while EPFO controls the operational claim flow.
- 4.Keep the acknowledgement. The 2026 Scheme says a complete claim should be settled within 20 days.
The takeaway
Verdict: transfer on a normal job switch. Withdraw only for a real need, and plan around the protected 25% instead of treating your EPF balance like a bank account.