The Employees’ Provident Fund Organisation (EPFO) has significantly overhauled its withdrawal framework as of January 2026. The new system, often referred to as EPFO 3.0, is designed to be “digital-first” and far more intuitive for the average employee. The most critical update is the unification of rules. Previously, employees had to navigate 13 complex categories with service requirements ranging from 2 to 7 years; these have now been streamlined into just three broad categories with a universal service requirement.
The "12-Month" Rule: A Major Shift in 2026
Under the 2026 reforms, the minimum service requirement for all partial withdrawals has been reduced to just 12 months.
- Old Rule: You often had to wait 5–7 years for marriage, education, or housing withdrawals.
- New Rule: Once you complete one year of service, you are eligible for partial advances.
Key Scenario: When Can You Withdraw 100%?
| Scenario | Conditions for 100% Withdrawal |
|---|---|
| Retirement | Upon reaching the age of 55 (earlier it was 58 for full settlement). |
| Unemployment | 75% can be withdrawn after 1 month; the remaining 25% after 12 months of continuous unemployment. |
| Permanent Disability | If the member is certified as permanently unfit for work. |
PF Withdrawal Limits for Housing Needs
Compared to NPS, EPF is more flexible when it comes to withdrawal for housing needs. Under Para 68B of the EPF scheme rules, subscribers are allowed to withdraw an advance for six different reasons related to housing.
| Purpose | How much withdrawal is allowed |
|---|---|
| Purchase of Site | 24 months’ basic wages and DA. |
| Purchase of House/Flat/Construction | 36 months’ basic wages and DA, or total of employee and employer share with interest, or total cost (whichever is least). |
| Additional Alteration/Improvement | 12 months’ basic wages and DA, or employee share with interest, or cost (whichever is least). |
The “25% Retention” Safeguard
For partial withdrawals (advances) while you are still employed, EPFO has introduced a mandatory retention rule. At least 25% must remain in the account to ensure the power of compounding continues to work.
Steps to Apply for PF Withdrawal Online (2026)
EPFO offers an online withdrawal facility through the UAN portal. The number of steps has reduced from 27 to 18 and may reduce further.
- UAN Active: Ensure your UAN is active and linked with your registered mobile number.
- KYC Completion: Your UAN must be linked with Aadhaar, PAN, bank account, and IFSC code.
- Form Selection: Use Form 31 for partial advances (Housing).
- Aadhaar Verification: Use Face Authentication on the portal to remove the need for employer approval for many digital services.
Frequently Asked Questions
Q: Can I withdraw 90% of my PF balance for a home?
A: Yes, under Para 68-BD, EPF rules allow withdrawal of up to 90% for housing after three years of service.
Q: Is there an Auto-Settlement feature?
A: Yes. The limit for automatic claim processing (no manual officer intervention) has been raised from ₹1 Lakh to ₹5 Lakh.
Q: Can I withdraw via UPI?
A: By April 2026, members will be able to withdraw up to 75% of their eligible balance instantly via UPI (initially through the BHIM app).