New EPF rules 2026: How will PF account holders benefit from the new rules? Experts explain..

New EPF Rules 2026: The Employees' Provident Fund Organisation (EPFO) has introduced several reforms to EPF rules for the convenience of the workforce. The objective of these new rules is to eliminate hassles associated with PF and strengthen the pension fund. Financial experts explained these changes in simple terms on a CNBC-TV18 show.

**13 types of hassles eliminated; now only 3 categories**

Under the old rules, there were 13 different reasons and sets of regulations for withdrawing PF money. These have now been consolidated into just three main categories: illness; marriage and education; and housing or special needs. One will no longer have to navigate a maze of different rules for various types of advances.

**Advance available after just 1 year of service**

Previously, withdrawing an advance from the PF required a certain number of years of service. This process has now been significantly simplified. You can withdraw funds during an emergency even if you have completed only 12 months (1 year) of employment. Additionally, provisions have been made to allow advances up to 10 times for children's higher education and up to 5 times for marriage.

**25% of the balance to remain locked for retirement**

Many individuals used to withdraw their entire PF balance upon changing jobs or during their tenure. The new rules prevent this practice. Now, 25% of your total PF balance will remain secured (locked). This means you cannot withdraw your entire accumulated amount as an advance. According to financial expert Kartik Jhaveri, "This step has been taken to ensure that the employee has a respectable sum of money available upon retirement."

**How ​​to access funds upon job loss?**

If an individual loses their job, they can withdraw 75% of their PF balance within one month. The remaining 25% can only be withdrawn after remaining unemployed for 12 months. The full 100% PF amount will be available only upon retirement at age 55, settling abroad, or in the event of severe disability.

**New twist regarding pension (EPS) withdrawal**

Personal finance expert Harsh Rohra noted that significant changes have also been made to the Employee Pension Scheme (EPS) rules. Previously, pension funds could be withdrawn two months after leaving a job; now, one must wait at least 36 months (3 years). The government intends for people to preserve their pension funds rather than withdrawing them prematurely, ensuring they can avail the benefits of the pension in their old age.

**Funds to be credited to the account within 3 days**

The EPFO ​​has also upgraded its digital services. Now, funds for claims related to illness, education, or marriage will be credited to the account within three days. This process will not require manual intervention. Claims of up to ₹5 lakh will now be auto-settled. Most importantly, the mandatory requirement to upload a cancelled cheque or bank passbook while filling out the claim form has been eliminated.

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