PF Balance: There's a lack of awareness among people regarding PF balances. As a result, many employees are retiring with a balance of only 10,000 or 20,000 rupees. Let's find out why.

It is important to create awareness among people regarding PF balance.

EPFO News: Every employee has a PF account under the Employees' Provident Fund Organization, which collects funds for that employee's future and needs. However, many people lack awareness about this account. Consequently, it was recently revealed that nearly 50 percent of employees are retiring with a balance of just 10,000 or 20,000 rupees. In light of this, the organization has now made a new decision.

EPFO's new decision
: The EPFO ​​has stated that under the new EPF Scheme 2026, it will be mandatory to maintain at least 25% of the total balance in a PF account. Responding to an email sent by Business Standard, the EPFO ​​also stated that approximately 48.7 percent of employees had only ₹10,000 to ₹20,000 left in their PF accounts at the time of their last payout. This weakens financial security after retirement.

Even if you withdraw more than half, you'll still save.
The EPFO ​​also says that if an employee works for 20 years at a monthly salary of ₹15,000, their PF account could accumulate approximately ₹1.4 million. Even if they withdraw 75% of the funds, they'll still have approximately ₹3.5 million left in their account. This could result in 7 to 35 times more savings at retirement than before.

Several changes have been made
to the new EPF scheme, which came into effect on July 1, 2026. Now, instead of separate rules for different needs, a simplified system has been created. After completing 12 months of service, employees can withdraw funds from their PF account for needs such as illness, education, marriage, and home purchase.

Maintaining 25% of the balance will
now be mandatory. You can now withdraw the balance from your PF account if needed. However, you must maintain at least 25% of the balance in your account before doing so. This change is beneficial for employees as it will make withdrawals easier when needed and will also ensure a healthy retirement savings.