In a major move to make Provident Fund (PF) withdrawals simpler and more member-friendly, the Central Board of Trustees (CBT) of the Employees’ Provident Fund (EPF) has approved a new set of rules.
The 238th CBT meeting, chaired by Union Labour and Employment Minister Mansukh Mandaviya, introduced simplified and liberalized provisions aimed at enhancing both member convenience and retirement security.
Simplified Rules for Partial Withdrawals
To make the process easier, the EPF’s 13 old and complicated withdrawal rules have now been merged into three simple categories —
Essential Needs (like illness, education, or marriage)
Housing Needs
Special Circumstances
Members can now withdraw up to 100% of their eligible balance, including both employee and employer contributions.
The withdrawal limits have also been expanded — you can now withdraw for education up to 10 times and for marriage up to 5 times, compared to the earlier total limit of three times combined for both purposes.
The minimum service requirement has been reduced to just 12 months for all types of partial withdrawals, making it easier for new employees to access funds when needed.
No Documentation, Faster Claims, and Better Retirement Security
Previously, members had to justify withdrawals under “special circumstances” such as job loss, natural disasters, or factory shutdowns.
Now, no reason needs to be given — simplifying the process and reducing claim rejections.
A new rule also requires members to maintain at least 25% of their PF balance at all times.
This ensures they continue earning the 8.25% annual interest, helping build a strong retirement corpus while still giving them flexibility to access funds.
With no documentation needed, EPFO aims to achieve 100% auto-settlement of withdrawal claims, ensuring faster processing and fewer hassles.
Additionally, the waiting period for premature final settlement of PF has been extended from 2 months to 12 months, while pension withdrawal can now be done within 36 months.
This approach balances immediate financial needs with long-term retirement savings.
What This Means for Members
The new EPF withdrawal framework promises greater ease, transparency, and flexibility for millions of members.
It allows employees to handle life’s urgent financial needs—like education, healthcare, or marriage—without compromising their long-term retirement benefits.
