EPFO: There’s news of great relief for working people. Withdrawing Employees’ Provident Fund (EPF) funds will soon be easier than ever. EPF account holders will no longer have to go through a lengthy claim process to withdraw funds.
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EPFO: There’s a big relief for working people. Withdrawing Employee Provident Fund (EPF) funds will soon be easier than ever. EPF account holders will no longer have to go through a lengthy claim process to withdraw funds. They will be able to transfer EPF funds directly to their bank accounts through UPI. This change is being made to ease the daily hassles of millions of employees. It’s possible that up to ₹25,000 can be withdrawn instantly through UPI.
According to a report, this new feature could be rolled out by April 2026. After this, EPF members will be able to withdraw a portion of their provident fund balance through UPI. The Labor Ministry and EPFO are working to finalize this system. The plan is to not allow the entire EPF account balance to be withdrawn at once. Instead, a portion will be kept safe, and the remaining amount can be withdrawn when needed.
In the new system, EPF members will be able to log into their accounts and see how much they have available for withdrawal. The money will then be transferred directly to the bank account via UPI. A UPI PIN will be used in this process, ensuring the secure transaction. Once the money is transferred to the bank account, employees can spend it using UPI or withdraw it from an ATM.
This new facility is expected to benefit approximately 80 million EPFO members. Currently, to withdraw funds from EPF, employees had to file claims online or offline. Documents are often required, and the process is time-consuming. Even though the EPFO has introduced auto-settlement, filing claims remains essential.
Currently, EPF advance claims under auto-settlement are settled within three days. The limit has also been increased from ₹1 lakh to ₹5 lakh. This allows employees to quickly access funds for essential expenses such as illness, marriage, education, and housing. This facility was first introduced during the COVID-19 pandemic to provide immediate relief to people in times of crisis.
Despite this, the EPFO has to process over 50 million claims annually. Most of these are withdrawal-related claims. This puts significant administrative pressure on the EPFO. The new UPI-based system aims to reduce this burden and give employees hassle-free access to their own deposits.
EPFO officials have clarified that the organization cannot allow unlimited withdrawals directly from PF accounts, unlike banks, because it does not have a banking license. However, the government wants EPFO services to be as fast, simple, and digital as banks. This new system is being implemented in line with this vision.
Earlier, in October 2025, the Central Board of Trustees, the EPFO’s highest decision-making body, approved simplifying the rules for partial PF withdrawals. The 13 complex rules were removed, leaving only three categories.
First, essential needs such as illness, education, and marriage.
Second, housing and housing needs.
Third, emergency.
Under the new system, employees will be able to withdraw up to 100 percent of their eligible PF balance, which includes both employee and employer contributions. However, to ensure retirement security, it has been decided that at least 25 percent of the total deposit will remain in the account.
This will allow employees to continue to benefit from the EPFO’s current interest rate of 8.25 percent per annum and compounding, building a strong retirement corpus. You’ll receive your money on time, without having to retire.
