Big EPFO changes: Withdraw PF via ATM & UPI by March 2026, says labour minister

In a game-changing announcement, Union Labour Minister Mansukh Mandaviya revealed that the Employees’ Provident Fund Organisation (EPFO) will soon let subscribers withdraw their provident fund (PF) directly from ATMs and via UPI. "You can already take 75% immediately, but before March 2026, we'll add ATM and UPI options," Mandaviya told ABP News, aiming to ditch the paperwork nightmare.

Currently, EPF members juggle multiple forms for withdrawals, even though the money is theirs. "It's a hassle—we're simplifying it," the Minister said, spotlighting recent October 2025 reforms that streamlined operations.

Key reforms on EPF withdrawals

EPFO merged 13 cluttered categories—plagued by varying eligibility and service rules—into a unified framework, slashing delays and rejections.

Bigger withdrawals

Earlier, EPF subscribers were allowed to withdraw only their own contributions along with the interest earned, with the permissible amount typically capped between 50% and 100% depending on the reason for withdrawal. Under the revised rules, the withdrawable corpus now also includes the employer’s contribution, in addition to the employee’s contribution and interest. This change substantially increases the amount accessible to members, as the 75% EPF balance that can now be withdrawn is significantly higher than what was available under the earlier framework.

Uniform eligibility

Previously, withdrawal eligibility varied by purpose and, in some cases, required up to seven years of service, making the rules complex. The system has now been simplified with a uniform eligibility period of 12 months for all types of EPF withdrawals. This standardisation makes the process easier to understand and enables employees to access a larger portion of their savings after completing just one year of service.

Unemployment-related EPF withdrawals

In case of unemployment, members can now withdraw 75% of their total PF balance immediately, including both employee and employer contributions along with accrued interest. The remaining 25% can be withdrawn after one year. Full withdrawal of the entire PF balance is permitted in specific situations such as retirement after the age of 55, permanent disability, incapacity to work, retrenchment, voluntary retirement, or permanent relocation outside India.

Some other EPF-related changes

• Passbook Lite: View simplified PF snapshot directly on the member portal—no separate login needed.
• Annexure K download: Job-switchers can now grab their Transfer Certificate PDF instantly from the portal.
• Faster claims: Delegated powers to junior officers for quicker, transparent settlements.
• Employee Enrolment Scheme: Employers can retroactively enrol missed workers (2017-2025); employee contributions waived.
• Aadhaar Face Authentication: Mandatory via UMANG app for UAN creation since August 2025.
• Simplified withdrawals: 13 categories merged into three (Essential Needs, Housing, Special); 12-month minimum service; up to 100% eligible balance (keep 25% for retirement).
• Longer job-loss wait: Full EPF: 12 months (was 2); EPS pension: 36 months (was 2).
• Easier transfers: From January 2025, often no employer approval needed post-job change.
• Centralised Pension System (CPPS): Live since Jan 2025; pensions via NPCI to any bank—no PPO hassles.
• Vishwas Scheme: Settle old late-contribution penalties cheaply (0.25-1% per month) till Oct 2025.
• Home Life Certificates: Pensioners must submit Jeevan Pramaan via IPPB from home.
• 8.25% Interest: Fixed for FY 2024-25, ensuring steady retirement returns.