New Rules For EPF Corpus Access Are Here

EPFO allows 75% EPF withdrawal for job loss, but 25% must remain in the account.
30 crore EPFO members across India are impacted by these updated withdrawal rules.
Full EPF settlement permitted after one year of unemployment, offering total access.

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What is the story about?

The Employees' Provident Fund Organisation (EPFO) has updated its rules. Now, members can withdraw up to 75% of their EPF savings. This is a significant change, especially for those facing unemployment. Here's a look at how it works.

75% Withdrawal Option

The EPFO has introduced a new provision allowing members to withdraw a substantial portion of their EPF corpus. Specifically, individuals now have the option

to access up to 75% of their accumulated funds. This move is designed to provide financial relief to those experiencing job loss or facing unemployment. Importantly, even after withdrawing 75% of the funds, members are still required to maintain a minimum balance of 25% within their EPF account. This balance ensures some continued financial security and preserves the benefits of the EPF scheme. The new rule affects approximately 30 crore EPFO members across India. This change is particularly relevant in today's economic landscape, providing a crucial safety net for many.

Premature Full Settlement

In addition to the 75% withdrawal option, the EPFO also permits premature full settlement of the EPF balance under specific conditions. Members can now completely withdraw their EPF funds after a period of unemployment lasting one year or more. This means that if a member has been jobless for over a year, they can opt to receive the entire remaining balance in their EPF account. This provision offers a more comprehensive solution for those facing prolonged unemployment, allowing them to access the full amount of their savings. This option contrasts with the partial withdrawal allowed under the 75% rule, offering a different financial strategy depending on individual circumstances and needs. The EPFO's goal is to offer more flexible ways for members to manage their retirement savings during challenging times.