PF Withdrawal via UPI Coming Soon? EPFO Starts Pilot Trials, December Rollout Targeted
EPFO has started pilot testing UPI-based provident fund withdrawals with banking partners, with a full rollout targeted by December end. Members can withdraw up to 75 per cent of their eligible balance.
The Employees' Provident Fund Organisation (EPFO) has begun pilot testing a system that will let subscribers withdraw their provident fund savings directly through the Unified Payments Interface (UPI), with the official rollout targeted for the end of December. The retirement fund body is running the trials in coordination with banking partners, and the move is aimed at cutting settlement times and modernising claim processing for more than 30 crore registered members, of whom around 7.5 crore are actively contributing.
Subscribers will not need to wait long for payouts once the facility goes live, as the money is meant to move straight to a linked UPI account.
How PF Withdrawals Work Right Now
At present, members who want a partial or full withdrawal have to file a claim online on the Member e-Sewa portal. After the claim is processed, EPFO transfers the amount to the member's validated bank account. EPFO Update: Final PF Withdrawals Will Now Earn Interest Till Authorisation Date.
What Will Change With UPI
Under the proposed framework, EPFO plans to link each subscriber's Universal Account Number (UAN) directly with their UPI account. The retirement fund manager is also expected to launch an app that can connect with bank accounts, BHIM and other major UPI platforms.
The upcoming integration is designed to join these systems together, offering a more streamlined and digital claim settlement experience. EPFO Passbook: How To Check Your Monthly PF Contributions and Balance Online.
How Much Can You Withdraw Via UPI?
Existing rules will continue to apply, even as access improves. Eligible subscribers will be able to withdraw up to 75 per cent of their qualifying balance through UPI.
As per current EPFO norms, at least 25 per cent of the total balance has to stay in the account for long-term retirement security. This retained amount will keep earning compounding, tax-exempt interest.
Withdrawals will also remain tied to the existing non-refundable grounds, which include medical emergencies, higher education, marriage and home purchase.
Wage Ceiling Raised From INR 15,000 To INR 25,000
The pilot comes after the Union Cabinet approved a major revision that raises the mandatory wage ceiling for provident fund coverage from INR 15,000 to INR 25,000 per month. This is the first change to the limit since 2014.
The new threshold is estimated to bring around 51 lakh additional formal-sector workers under compulsory provident fund coverage.
For employees whose contributions were earlier capped at the INR 15,000 limit, the mandatory monthly deduction at the standard 12 per cent rate rises from INR 1,800 to INR 3,000. Employers will make a matching statutory contribution.
(The above story first appeared on LatestLY on Oct 09, 2026 06:52 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
