EPF UPI Withdrawal Rules: Employees will soon find it much easier to withdraw from their Employees' Provident Fund (EPF), thanks to the introduction of new rules by the Ministry of Labour and Employment. In a recent announcement, Union Minister Mansukh Mandaviya confirmed that employees will be able to withdraw their provident fund using both ATM and UPI systems in the near future.

Union Minister Mansukh Mandaviya announced the forthcoming changes, stating, “You can still withdraw your 75 per cent EPF immediately. I am telling you in advance that before March 2026, the Ministry is introducing a feature where a subscriber can withdraw their EPF through an ATM. The Ministry will also link EPF withdrawals with UPI".

This move aims to simplify the process for workers, allowing them to access their funds via the same methods they use for other financial transactions, bringing greater convenience and speed to the withdrawal process.

The Minister discussed the current system, pointing out that withdrawing EPF currently requires filling out various forms, which often causes difficulties for individuals. According to the Minister, "The money in the EPF is entirely the subscriber's, but different forms and processes make it cumbersome. Keeping this in mind, the Ministry is simplifying the withdrawal process."

EPF Withdrawal Rules: Key Reforms to EPF System

- The recent changes follow a series of reforms aimed at modernising the EPF system. In October 2025, the Employees' Provident Fund Organisation (EPFO) approved major steps to simplify the withdrawal rules, making them faster, more transparent, and more accessible. Prior to these reforms, claim delays and rejections were commonplace due to complex categories and eligibility criteria. To address these issues, 13 different withdrawal categories have been streamlined into a single, more efficient framework.

- Under the existing system, employees could only withdraw their own contributions and the interest accumulated on them, with limits based on specific reasons for withdrawal. For example, employees were typically allowed to withdraw between 50 per cent and 100 per cent of their total PF balance.

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- The new rules, however, will allow both the employee’s and employer’s contributions to be included in the withdrawal, along with the accrued interest. As a result, the total amount available for withdrawal will increase significantly, with 75 per cent of the EPF corpus now accessible compared to the previous limit.

- Previously, eligibility for withdrawals varied depending on the reason, with some conditions requiring a waiting period of up to 7 years. Under the new rules, this waiting period has been reduced to just 12 months for all types of withdrawals. This means that as soon as an employee completes one year of service, they will be eligible to withdraw a larger sum from their EPF account.

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- If an employee becomes unemployed, they will be able to immediately withdraw 75 per cent of their PF, including both the employee’s and employer’s contributions, along with the interest. The remaining 25 per cent can be withdrawn after one year. Furthermore, after reaching the age of 55, employees will be allowed to withdraw their entire PF in cases of retirement, permanent disability, voluntary retirement, or permanent settlement abroad.