Over seven crore members of the Employees’ Provident Fund Organisation (EPFO) can now withdraw up to 100% of their eligible balance, including both employee and employer contributions, as per a Labour Ministry announcement. The decision was approved by the EPFO’s Central Board of Trustees, chaired by Union Labour Minister Mansukh Mandaviya, during its October 13 meeting.
The revised framework simplifies and liberalises withdrawal rules by merging 13 earlier provisions into a single, user-friendly system divided into three categories — Essential Needs (such as illness, education, and marriage), Housing Needs, and Special Circumstances. Withdrawal limits have been expanded, allowing up to 10 withdrawals for education and five for marriage, compared to the previous combined limit of three. The minimum service period has been reduced to 12 months for all cases. Moreover, the time limit for premature EPF settlement has been extended to 12 months and for final pension withdrawal to 36 months.
The ministry said these changes, which require no documentation, will enable full automation of claims. Additionally, four fund managers — SBI, HDFC, Aditya Birla Sun Life, and UTI — were appointed to manage EPFO’s debt portfolio for five years.
