EPFO Latest Update: The Employees’ Provident Fund Organisation (EPFO) has eased rules for partial withdrawals, allowing members to withdraw up to 75% of their provident fund corpus while mandating that
at least 25% be retained as “minimum balance.” The move, announced after the Central Board of Trustees’ meeting chaired by Labour Minister Mansukh Mandaviya, aims to help members meet immediate financial needs without compromising long-term retirement savings.
According to an official statement, the liberalisation of partial withdrawal rules will enable members to address expenses related to illness, education, marriage, housing, or other special circumstances while ensuring the remaining balance continues to earn returns and support retirement goals.
In addition to this, EPFO has increased the period for availing premature final settlement of pension funds from two months to 36 months. The tightening of norms is intended to discourage premature withdrawals from the Provident Fund (PF) and pension accounts when employees switch jobs.
The new rules also simplify the withdrawal process. Members will no longer be required to provide reasons while applying for withdrawals under “special circumstances,” such as natural calamities, continuous unemployment, or epidemic-related disruptions. The minimum service requirement for partial withdrawal has been reduced to 12 months, making the facility accessible to more subscribers.
Further, the limits on withdrawals have been eased — education-related withdrawals are now allowed up to 10 times, while withdrawals for marriage purposes can be made up to five times, compared to the earlier limit of three.
EPFO has also announced a collaboration with India Post Payments Bank (IPPB) to provide doorstep Digital Life Certificate services for pensioners. The service will be offered free of charge, with the Rs 50 cost per certificate borne by IPPB. This initiative is expected to benefit pensioners, especially in rural and remote areas, by allowing them to submit life certificates from home through IPPB’s vast postal network.
The revised EPF withdrawal and pension rules are aimed at improving financial flexibility for members while reinforcing the long-term sustainability of retirement savings.
