The Employees’ Provident Fund Organisation (EPFO) has introduced several important changes this year to the rules for partial and full withdrawals from PF accounts.
These updates aim to make the withdrawal process simpler, faster, and more transparent for employees.
With these new rules, PF members get more clarity and flexibility on how and when they can use their savings.
PF Withdrawal Rules After Leaving a Job
Earlier, employees could withdraw 75% of their PF balance after one month of unemployment and the remaining 25% after two months.
Under the new rules, members can withdraw 75% of their PF balance immediately after leaving a job.
However, the remaining 25% can now be withdrawn only after 12 months of continuous unemployment.
Changes in Pension Withdrawal Rules
Earlier, pension withdrawal was allowed after two months of unemployment.
Now, EPFO members can withdraw their pension amount only after 36 months of unemployment.
This change increases the waiting period significantly.
PF Withdrawal for Medical Treatment
The medical withdrawal rule remains mostly the same.
Members can withdraw six months’ basic salary plus dearness allowance, or their own PF contribution, whichever is lower.
However, a new condition has been added.
Employees must now have at least 12 months of service to use this facility.
PF Withdrawal for Education and Marriage
Earlier, employees could withdraw up to 50% of their PF contributions after seven years of service.
Withdrawals were limited to three times for education and two times for marriage.
Under the new rules, the limits have been relaxed.
Members can now make up to 10 withdrawals for education and five withdrawals for marriage-related expenses.
Buying or Building a House Using PF
Previously, employees needed 24 to 36 months of service to withdraw PF for buying a house, building one, or purchasing a plot.
Now, the minimum service period has been reduced to 12 months for all partial withdrawals.
Members can still withdraw up to 90% of their total PF balance, subject to existing conditions.
PF Withdrawal When a Company Shuts Down
Earlier, employees could withdraw either their own contribution or up to 100% of the PF balance if a company closed down.
Under the new rule, employees can withdraw only 75% of their total PF balance.
The remaining 25% must stay in the account to maintain the minimum balance.
PF Withdrawal During a Pandemic or Emergency
In situations like an epidemic or pandemic, employees can still withdraw three months’ basic salary plus DA or 75% of their PF corpus, whichever is lower.
The new rules mainly clarify the process to make withdrawals easier during emergencies.
PF Withdrawal in Case of Natural Disasters
Earlier, PF withdrawal during natural disasters was limited to ₹5,000 or 50% of the employee’s contribution, whichever was lower.
Now, EPFO has set a minimum service requirement of 12 months for this category as well.
This means employees must complete at least one year of service to make such withdrawals.
