EPF withdrawal rules in 2026: how much you can take out, and when

Your EPF is the retirement money your employer and you both put in every month. You can take some of it out before retirement, and the rules changed in 2026. The short version: after 12 months of membership you can withdraw up to the full eligible balance, but a quarter of what has gone in always stays.

What changed. On 29 June 2026, the government notified the Employees’ Provident Funds Scheme, 2026, replacing the 1952 scheme. It follows the decision EPFO’s board took in October 2025 to merge 13 separate withdrawal rules into three categories, per the Labour Ministry. The waiting period for most withdrawals dropped to 12 months, and your employer’s share now counts towards what you can take out.

The 25% that stays. Before any partial withdrawal, the scheme sets aside a Minimum Balance: 25% of everything credited to your EPF account so far, your share, your employer’s share and the interest. What’s left is your Eligible Member Balance, and that’s the most you can withdraw.

An example. Say 4 lakh rupees has gone into your account in total, with no earlier withdrawals (an illustration). The Minimum Balance is 1 lakh rupees, so up to 3 lakh rupees is available for a partial withdrawal.

The three categories. Each needs 12 months of total membership, and each allows up to 100% of the Eligible Member Balance:

Did you know? Half of EPF members had less than 20,000 rupees in their PF when they finally settled their account, and three-quarters had less than 50,000, the Labour Ministry said in October 2025. The 25% Minimum Balance exists to stop repeated withdrawals from emptying the account before retirement.

Full withdrawal. You can take out everything on retiring after 55, on permanent incapacity, on retrenchment or a voluntary retirement scheme, or just before leaving India for good. If you simply leave a job, full withdrawal needs a continuous 12 months without covered employment first. The one exception is a woman resigning to get married, who doesn’t have to wait. If you’ve lost your job, our lesson on what to do if you lose your job covers the first month.

Tax and TDS. A withdrawal is tax-free if you’ve rendered five years or more of continuous service, and earlier jobs count if you transferred that PF to your new account. It’s also tax-free if your service ended for reasons beyond your control. Otherwise the payout becomes taxable, and EPFO deducts TDS at 10% when it’s 50,000 rupees or more, under the Income-tax Act, 2025. On a 2 lakh rupee early payout, that’s 20,000 rupees held back (an illustration).

How to claim. All claims go online through EPFO’s portal using your UAN, so make sure it’s activated and your Aadhaar and bank account are linked first. Our guide to activating your UAN shows how. The scheme says a complete claim must be paid within 20 days.

The takeaway. You can now reach most of your EPF after just 12 months, but a quarter of what has gone in stays locked, and full withdrawal waits for retirement or a year without work. Changing jobs? Transfer the balance instead of withdrawing it, and keep both the growth and the tax benefit.

More to read: PPF vs EPF, gratuity explained, and money after marriage.