The Employees’ Provident Fund Organisation (EPFO) has approved a major overhaul of its withdrawal rules, allowing members to withdraw up to 100 per cent of their savings under specific conditions. The move aims to make the process simpler, more flexible and better aligned with the financial needs of its over seven crore subscribers.
Simplified structure for easier withdrawals
The decision was taken at the meeting of the Central Board of Trustees (CBT), the highest decision-making body of the EPFO, chaired by Minister of Labour and Employment, Mansukh Mandaviya on Monday, October 13. The board approved a proposal to merge 13 complex and overlapping provisions into a single, streamlined framework divided into three categories – Essential Needs, Housing Needs and Special Circumstances. According to the Ministry of Labour & Employment, the changes are designed to improve the Ease of Living for EPF members and ensure quicker access to funds during important life events.
Higher withdrawal limits for education and marriage
As part of the reforms, the EPFO has significantly liberalised the limits on withdrawals for key purposes. Members can now make education-related withdrawals up to 10 times and marriage-related withdrawals up to 5 times during their service period. This marks a sharp increase from the earlier combined limit of three partial withdrawals for both education and marriage.
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Uniform service requirement across categories
In another major relaxation, the minimum service requirement for all types of partial withdrawals has been standardised to 12 months, replacing the varying conditions that previously applied. This means members will be eligible for withdrawals much earlier in their careers than before.
Broader access and member convenience
The EPFO said the restructured framework – covering essential, housing and special needs, would make withdrawals simpler and faster to process. Officials noted that the reforms are part of a broader push to modernise India’s social security system, ensuring that workers can access their funds easily in times of need while still preserving long-term retirement benefits. This liberalisation marks one of the most significant changes to EPF withdrawal rules in years.
