The change aims to give subscribers greater financial flexibility while maintaining a portion of their retirement corpus.
Who can withdraw 100%
The new rules apply to all EPF subscribers who meet the minimum service requirement of 12 months. Earlier, withdrawal eligibility varied depending on the type of partial withdrawal, often leading to confusion.
Now, any member who has completed at least a year of service can access their full eligible balance under the new framework.
How members can withdraw?
Members can access their balance through the EPFO’s online portal or via employer facilitation. The process has been simplified to auto-settlement, meaning no documentation is required for partial withdrawal claims.
Withdrawals can be made under three broad categories:
Essential needs: Includes illness, education, and marriage
- Housing needs: Covers house purchase, construction, or renovation
- Special circumstances: Covers emergencies without requiring justification
Under the 100% withdrawal provision, members can draw their full PF balance without splitting it between categories, giving more flexibility to meet urgent financial needs.
Minimum balance and interest considerations
While members can withdraw 100% of the eligible balance, EPFO recommends maintaining at least 25% of contributions to continue earning interest at the prevailing rate of 8.25% per annum.
This ensures that the retirement corpus continues to grow even after accessing funds for immediate needs.
Why this matters
The reform provides a significant boost to financial ease for subscribers, allowing them to meet urgent expenses such as medical emergencies, education fees, or family needs without procedural delays.
By offering 100% withdrawal access with minimal documentation and digital processing, EPFO has made partial withdrawals more transparent, faster, and member-friendly.
