The Employee Provident Fund (EPF) isn't just a savings account for financial security after retirement. Employees can withdraw a small amount from their PF account if needed. It's now being said that the EPF Scheme 2026 will simplify the rules for withdrawing small amounts from their PF. Specifically, withdrawals from the PF are now available for purchasing a home, building a home, repaying a home loan, or renovating a home.

12 months membership is necessary to withdraw PF for house.
According to the new rules, to withdraw PF related to house, the employee should have at least 12 months of EPF membership. Apart from repaying the home loan, he can also withdraw money from PF for repair or renovation of the existing house.

How much can be withdrawn from PF?
The key change in the new rules is that the withdrawal limit has been linked to the eligible member balance. There is a provision to withdraw up to 100% of the eligible member balance for housing. However, it is necessary to maintain at least 15% of the total amount in the PF account. Simply put, up to 75% of the eligible PF balance can be withdrawn, while the remaining 25% will remain in the account for financial security after retirement.

For what reasons can money be withdrawn from PF?

The housing category of EPF includes several reasons for which an eligible employee can withdraw money from PF.

To buy a house, flat or plot

to build a new house

To repay home loan

For renovation of an existing home

For renovations or necessary improvements to the home

Under this housing category, maximum 5 withdrawals can be availed during the entire membership period.

PF balance is now more important than salary
Earlier, limits based on salary multiplier were applicable while withdrawing money from PF due to various reasons. In the new system, eligible member balance is the important basis for calculating the withdrawal amount. For example, if an employee's eligible PF balance is Rs 10 lakh, then up to Rs 7.50 lakh can be withdrawn subject to maintaining a minimum balance of 25% i.e. Rs 2.50 lakh in the account. However, the actual amount sanctioned will depend on the eligibility as per EPFO ​​records and applicable rules.

UAN and KYC must be updated.
To withdraw PF funds, the member's UAN, KYC, bank account, and personal details must be correct and updated. Incorrect bank account details, KYC errors, or any other mistakes in the member's details can hinder a PF claim.

PC: Danik Bhaskar