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EPF Scheme 2026 keeps 25 percent after withdrawals
Mint··19 Jul
Under the Employees Provident Fund Scheme 2026, members must retain at least 25 percent of their Eligible Member Balance after any partial withdrawal before retirement. The new scheme replaces the 1952 rules and took effect on July 1. Membership of at least 12 months is required, and the minimum balance floor is set at Rs 1,000.
Prism
What It Means For You
- You cannot drain your full Eligible Member Balance through partial withdrawals before retirement.
- At least 25 percent must stay invested, subject to a Rs 1,000 minimum residual.
- Twelve months of membership is required before using the new withdrawal framework.
What's Happening
- EPF Scheme 2026 replaced the 1952 scheme with effect from July 1.
- Partial withdrawals must leave 25 percent of Eligible Member Balance intact.
- Mint and Financial Express explained the floor rule for pre-retirement claims.
Why the 25 Percent Rule Exists
- Regulators have long worried that repeated advances shrink retirement savings too early.
- Eligible Member Balance gives a clearer calculation base than older informal practices.
- The reform pairs liquidity access with a mandatory savings residual until exit.
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