EPFO New Rules : There’s big news for around 30 crore EPFO subscribers. Salaried employees will now be able to withdraw the entire amount from their PF account, though a minimum balance condition will apply. Members must maintain 25% of the total balance, meaning you can easily withdraw up to 75% of your PF savings.
This major decision was announced after a meeting of the Central Board of Trustees (CBT), chaired by Union Labour Minister Mansukh Mandaviya. EPFO has introduced several relief measures that make it much easier for employees to withdraw money from their EPF accounts.
The good news is that you won’t even need to provide a reason for withdrawing up to 75% of your balance. In situations like natural disasters, pandemics, unemployment, or other special circumstances, employees will be allowed to withdraw funds without giving any specific reason. The meeting also focused on speeding up the claim settlement process for members.
EPFO has also approved the ‘EPFO 3.0’ Digital Transformation Framework to modernize its services further. This new system will include cloud-based technology, a mobile app, and automatic claim settlement features for a smoother user experience.
Let’s take a look at the major decisions announced in the EPFO meeting:
100% Withdrawal Made Easier
EPF members can now withdraw the entire amount in their PF account, which includes both their own contribution and the employer’s share. The EPFO has simplified the withdrawal rules by reducing the earlier 13 complex conditions to just 3 main categories —
- Medical, education, and marriage needs
- Housing purposes (such as buying or building a house)
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Special circumstances
Earlier, members could withdraw funds only 3 times for education and marriage, but now they can withdraw up to 10 times for education and 5 times for marriage. The minimum service period, which earlier varied depending on the reason, has now been reduced to 12 months. That means employees can make partial withdrawals after just one year of service.
25% Minimum Balance Rule
EPFO has also decided that 25% of the total balance must remain in the account as a minimum balance. This remaining amount will continue to earn interest at the current rate of 8.25% per annum (compounded).
This ensures that while employees have flexibility to withdraw funds when needed, they also continue to benefit from long-term pension fund growth.
