EPFO allows 100% partial withdrawal from PF accounts under simplified rules
PTC Web Desk: In a major decision benefiting over 7 crore Employees’ Provident Fund (EPF) subscribers, the Employees' Provident Fund Organisation (EPFO) has eased its withdrawal norms, now permitting members to withdraw up to 100% of their EPF balance under simplified provisions.
The Central Board of Trustees (CBT), chaired by Labour and Employment Minister Mansukh Mandaviya, has consolidated 13 separate withdrawal rules into three broad categories — Essential Needs, Housing Needs, and Special Circumstances.
Under the new framework, members can now make withdrawals for education up to 10 times and for marriage up to 5 times, compared to the earlier total limit of three withdrawals. The minimum service requirement for all partial withdrawals has also been reduced to just 12 months.
A new 25% minimum balance rule will ensure that a portion of the subscriber’s corpus continues to earn interest (currently 8.25% per annum), promoting long-term savings growth. Additionally, no documentation will be required in most cases, enabling auto-settlement of claims through an online process.
The Special Circumstances category allows withdrawals without specifying reasons, covering scenarios such as natural calamities or periods of unemployment.
In another significant announcement, the EPFO has introduced the “Vishwas Scheme”, aimed at settling pending litigation cases related to delayed PF payments. The scheme seeks to encourage employer compliance by reducing penal damages on late remittances.
To support EPS-95 pensioners, particularly those in rural areas, the EPFO has partnered with the India Post Payments Bank (IPPB) to provide free doorstep Digital Life Certificate services, making pension verification easier for elderly beneficiaries.
The Board has also approved the appointment of four new fund managers — SBI Mutual Fund, HDFC Asset Management Company, UTI Asset Management Company, and Aditya Birla Sun Life AMC — to manage the EPFO’s debt investments for the next five years, ensuring higher returns and safer retirement planning for members.
Meanwhile, changes have also been introduced in the final settlement periods:
Premature EPF withdrawal window extended from 2 months to 12 months.
Final pension withdrawal period increased from 2 months to 36 months.
- With inputs from agencies
