Withdrawals from EPFO will be easier in 2026, know the new rules
In 2026, news of significant relief for working individuals regarding EPF has emerged. Withdrawing funds from the Employees' Provident Fund will now be much easier than before. The EPFO has made changes to the rules that will make it easier to access funds when needed.
Employees' Provident Fund (EPF) is considered the most reliable savings for employed individuals. Now, in 2025-26, there's some good news for EPF account holders.
The Employees' Provident Fund Organization (EPFO) has simplified and clarified withdrawal rules, making it easier for people to understand when and under what circumstances they can withdraw their funds. This aims to protect retirement savings while providing assistance in times of need.
Withdrawals are now divided into three broad categories.
Previously, EPF withdrawal rules were divided into 13 categories, causing considerable confusion for employees. Now, the rules have been narrowed down to three broad categories:
essential needs, household needs, and special circumstances. This has not only made withdrawals easier but has also simplified the online claim process.
When can I withdraw the entire EPF amount?
You can withdraw your entire EPF amount under certain circumstances, such as after the age of 58, upon voluntary retirement, disability, or inability to work.
Additionally, you can withdraw 75% of your funds immediately upon unemployment and the remaining 25% after 12 months. You can also withdraw funds after settling abroad.
Partial Withdrawal: How much can you withdraw?
You can also withdraw funds from the EPFO for specific needs. For example, after 5 years of service, you can withdraw money for buying, building, or renovating a home.
After 10 years of service, you can withdraw up to 90% to repay a home loan. For renovation purposes, you can withdraw up to 12 times your monthly salary or your PF contribution, whichever is less. This facility can be used twice.
For medical, marriage and studies
You can withdraw funds at any time for the medical treatment of yourself, your spouse, your parents, or your children. There is no minimum service requirement.
After 7 years of service, you can withdraw up to 50% of your total contribution for your own marriage or that of your children/siblings.
Additionally, after 7 years of service, you can withdraw up to 50% of your total contribution for your children's education (after Class 10).
Before retirement or in case of emergency
You can withdraw 90% of your savings at age 54 or one year before retirement. A small amount can be withdrawn in case of disasters like floods, earthquakes, or if you haven't received your salary for more than two months.
What are the rules regarding tax?
Understanding the tax rules when withdrawing EPF funds is crucial. If an employee has worked continuously for five years or more, EPF withdrawals are completely tax-free. However, TDS may be deducted if the funds are withdrawn before five years.
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