The government is thinking about letting employees withdraw their full or partial Employees’ Provident Fund (EPF) balance after completing 10 years of service.
This change could benefit over 7 crore salaried workers, according to a report by Moneycontrol. Right now, people can only take out their entire EPF amount when they retire at 58 or if they remain unemployed for a long time.
Why Is This Change Needed?
The current rules don’t match how today’s workforce works. Many people switch jobs often, become freelancers, start their own businesses, or retire early—often in their 30s or 40s.
For these workers, having their retirement money locked until age 58 can be difficult. Allowing withdrawal after 10 years would give them more financial freedom to use their savings when needed.
Who Will Benefit?
Mid-career professionals switching industries or starting a business
Women taking breaks from work for family reasons
Young workers planning early retirement or further education
Employees with informal or short-term jobs who may not work till 58
Recent EPFO Steps to Make Withdrawals Easier
The Employees’ Provident Fund Organisation (EPFO) has already introduced many user-friendly changes:
Instant UPI withdrawals up to ₹1 lakh
Automatic settlement of claims up to ₹5 lakh
Reduced paperwork, cutting documents from 27 to 18
Withdrawal of up to 90% of PF for buying real estate after 3 years of service
These updates, along with the launch of EPFO 3.0 (which adds UPI payments, app access, and ATM withdrawals), show efforts to modernize the retirement system.
What’s Next?
Though the 10-year full withdrawal rule is not yet official, the government is seriously considering it.
If passed, this would be a major change in India’s retirement savings rules, giving workers more control over their EPF money.
