Meanwhile, from Friday, the government will start disbursing interest of 8.25 per cent for the EPF for the financial year 2025–2026. The process will be over by July 15, stated Ministry sources.
Under the new social security scheme, the Ministry of Labour and Employment has introduced initiatives that offer employees easy access to their accumulated provident fund (PF).The Ministry has simplified and streamlined provisions of partial withdrawal of accumulated EPF, merging 13 complex rules into a single and compressed the framework into three categories of availing the facility for “essential needs” which comprises illness, education and marriage, “housing needs” and “special circumstances” like disaster triggered emergencies.An employee becomes eligible for partial withdrawal of his EPF only after putting in minimum service of 12 months. The Employees’ Provident Funds Scheme, 2026, Employees’ Pension Scheme, 2026 and Employees’ Deposit-Linked Insurance Scheme, 2026, were notified by the Ministry of Labour & Employment under the new Code on Social Security.Meanwhile, from Friday, the government will start disbursing interest of 8.25 per cent for the EPF for the financial year 2025–2026. The process will be over by July 15, stated Ministry sources.Explaining the people friendly reforms, Ministry sources stated that earlier too employees were allowed to partially withdraw their PF after navigating 13 complex rules to meet expenses for studies, health, marriage, constructions or maintenance of building. But they have been compressed into three categories to make it minimalist with special circumstances provisions defined to meet emergencies such as covid.Not just that the number of partial withdrawal allowed have been liberalised. Withdrawals for educational requirements have been allowed up to 10 times and marriage up to 5 times from existing limit of total of 3 partial withdrawals in all in both the cases, sources pointed out. There is no limit for number of claims for illness, they narrated.Members can now withdraw up to 100 per cent of their ‘Eligible Balance’ which is 75 per cent of aggregate balance in a member PF account, including both employee’s and employer’s contributions. Earlier, they could withdraw only from the individual contribution to the EPF.Automatic PF transferThe Ministry has introduced automatic PF transfer for employees if they switch jobs. On rejoining or taking up new employment, members will not be required to submit separate applications for the transfer of their Aadhaar linked UAN based member accounts having PF accumulations. Transfer cases will be automatically initiated and settled, providing a seamless, paperless, and hassle-free experience while ensuring continuity of members’ provident fund accounts, as per the new processes.The EPFO will now pencil in digital compliance and timely settlement of claims, such as PF withdrawals and pension fixation, under its new social security scheme triggered due to the implementation of four labour codes.Stricter complianceEnsuring stricter compliance under the new setup, the Ministry has brought in a provision of slapping 12 per cent penal rate of interest on designated EPFO official for not settling claims for withdrawal of provident fund, pension and group insurance within 20 days of submission of applications.“Where the Commissioner fails without sufficient cause to settle a claim complete in all respects within twenty days, the Commissioner shall be liable for the delay beyond the said period and penal interest at the rate of twelve per cent per annum may be charged on the benefit amount, which shall be deducted from the salary of the Commissioner,” the new schemes provides.Published on July 2, 2026
