75% EPF withdrawal via ATM, UPI soon: Labour Ministry to roll out feature by March 2026

The Ministry of Labour and Employment has announced a major overhaul of the Employees’ Provident Fund (EPF) withdrawal process, aimed at making fund access faster and hassle-free. As per a report by The Economic Times, EPF subscribers will soon be able to withdraw up to 75% of their corpus directly through ATMs and Unified Payments Interface (UPI) platforms.

Union Labour Minister Mansukh Mandaviya, speaking in an interview with ABP News, said the new facility is expected to be launched by March 2026. The move marks a significant shift from the existing system, which requires members to submit multiple forms and wait for approvals before receiving their money.

Once the feature is introduced, subscribers will be able to receive EPF funds instantly in their registered bank accounts via UPI or withdraw cash physically through ATMs, drastically reducing processing time and administrative hurdles.

Expanded withdrawal limits

Under earlier rules, EPF members could withdraw only their own contribution along with the interest earned, often subject to restrictions based on the reason for withdrawal.

Following recent reforms, the withdrawable amount now includes the employer’s contribution and interest as well. This expansion allows members to access up to 75% of their total EPF corpus, particularly in situations such as unemployment.

Uniform eligibility rules

The Labour Ministry has also simplified eligibility conditions for withdrawals. Previously, minimum service requirements varied across 13 different withdrawal categories, causing confusion and claim rejections.

These have now been replaced with a standard eligibility period of 12 months across all categories, making the rules easier to understand and apply.

Full withdrawal in special cases

EPF subscribers are permitted to withdraw their entire corpus in specific circumstances, including retirement after the age of 55, permanent disability, voluntary retirement, or permanent relocation outside India.

In cases of unemployment, members can withdraw 75% of their balance immediately, with the remaining 25% available after 12 months if unemployment continues.

What this means for subscribers

The integration of EPF withdrawals with ATM and UPI platforms is expected to significantly ease access to provident fund savings. Combined with higher withdrawal limits and simplified eligibility norms, the reforms aim to ensure quicker financial relief and greater convenience for millions of EPF members.

Overall, the move to enable 75% EPF withdrawals through ATMs and UPI marks a major step towards digitising social security services and putting greater control in the hands of subscribers.

By cutting down paperwork, standardising eligibility norms and allowing faster access to larger portions of the EPF corpus, the Labour Ministry’s reforms are expected to provide timely financial support, especially during emergencies such as unemployment, while making the EPF system more transparent and user-friendly.