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EPF Scheme 2026: Major Changes for Employees & Employers
23 Jul
Summary
- EPF withdrawals simplified into three categories: essential, housing, and special.
- New scheme requires fresh EPF nominations for all members.
- Withdrawal limits increased for unemployment, marriage, and education.
The Employees' Provident Funds Scheme, 2026, came into effect on July 1, 2026, consolidating reforms from the past two years. While the contribution rate and wage ceiling remain unchanged, the new scheme introduces key updates for EPF members and employers.
Withdrawal categories have been streamlined from thirteen to three: essential needs, housing needs, and special circumstances. The membership duration requirement for certain withdrawals has been reduced from five years to 12 months, and claim settlement timelines shortened from 30 to 20 days.
Significant enhancements include higher withdrawal limits for unemployment, marriage, and education. Members can now withdraw up to 75% upon becoming unemployed, with 100% after 12 months. Female members resigning for marriage can withdraw 100% immediately.
Additionally, fresh EPF nominations are required, as previous nominations may be void under the new rules to prevent disputes. Employers need to encourage employees to update their nominations, especially after life events.
New compliance changes for employers and employees include the cessation of financing new life insurance policies through EPF balances and an extended waiting period of 12 months for full PF balance withdrawal after leaving employment.
