The Employees’ Provident Fund Organisation has announced that all members are allowed to withdraw 100% of their eligible PF balance. The EPFO has also made it easier to make partial withdrawals for purposes like education and marriage by allowing more withdrawals and reducing the minimum service period required. This EPFO Rule Change decision was taken at the 238th meeting of the Central Board of Trustees (CBT), chaired by Union Labour and Employment Minister Mansukh Mandaviya. CBT has also introduced the minimum balance criterion for EPFO members to secure sufficient retirement savings.
Withdrawals Made Simpler
EPFO has made a significant change by merging 13 separate withdrawal rules into a single rule, making it easier for all members to use. Withdrawals now come under three main categories. They are Essential Needs(illness, education, marriage), Housing Needs, and Special Circumstances.
- The Members can withdraw 100% of their eligible EPF balance, including the employee and employer shares. Before this rule,100% withdrawals were only possible at retirement.
- Earlier, combined withdrawals for education and marriage were allowed only 3 times, but after the EPFO rule change, education withdrawals are allowed up to 10 times, and marriage withdrawals are allowed up to 5 times.
- The minimum service period of any partial withdrawal is now 12 months.
- The EPFO has advised members to keep 25% of their balance to earn 8.25% interest and build a strong retirement fund.
- EPFO also increased the waiting period for final withdrawals to 12 months for EPF and 36 months for pension.
How Members Can Withdraw?
Any member who has completed at least a year of service can access their full eligible balance under the new framework. They can access their balance via the EPFO online portal or via employer facilitation. The withdrawal process has been simplified, as no documents are required for partial withdrawal claims.
CBT Launches Vishwas Scheme
CBT has launched the Vishwas scheme to reduce litigation by rationalising penal damages. This scheme will be very useful to members in resolving disputes easily, thereby ensuring faster recovery of dues and improved returns. This Scheme will cover all ongoing and past cases under Section 14B of the EPF Act. All related cases can be closed after the correct payment of dues.
Additional Significant EPFO Latest Updates
EPFO has also made other significant updates for its members. Now, EPFO provides doorstep digital life Certificate services to EPS’95 Pensioners, free of cost, as EPFO will cover the Rs 50 service charge. From September 2025, a new and improved Electronic Challan-cum-Return (ECR) system will also start. This will make it simpler for employers to upload details, verify them, generate challans, and make payments online. This system helps to reduce errors and complaints. The Central Board has selected four new fund managers to manage their investment funds efficiently. As time goes on, more updates will make EPFO simpler for everyone.
