New Delhi: In a landmark decision, the Employees’ Provident Fund Organisation (EPFO) has simplified the process for withdrawing funds from Provident Fund (PF) accounts, allowing members to access up to 100% of their eligible balance without submitting documents.
The announcement came during the Central Board of Trustees (CBT) meeting, chaired by Union Labour Minister Mansukh Mandaviya, on Monday.
The reforms aim to make life easier for salaried employees. The EPFO has streamlined partial withdrawal rules into three categories: essential needs (illness, education, marriage), housing expenses, and special circumstances. Members can now withdraw their entire PF balance, a move that eliminates previous restrictions.
Key changes include increasing withdrawal limits for education (up to 10 times) and marriage (up to 5 times), while reducing the minimum service period to 12 months. Withdrawals for special circumstances, such as natural disasters or unemployment, no longer require justifications, ensuring faster claim approvals. To secure members’ financial future, EPFO mandates a 25% minimum balance to earn 8.25% interest and compound benefits for retirement savings.
The introduction of an auto-settlement system eliminates the need for paperwork, speeding up claim processing. Additionally, the final settlement period has been extended from 2 to 12 months, and pension withdrawals from 2 to 36 months, offering greater flexibility.
Sharing the news on X, Minister Mandaviya stated, “Under PM Narendra Modi’s leadership, we’re simplifying life for EPF members and easing business for employers.” These reforms promise a hassle-free experience, empowering millions of employees to access their hard-earned savings with ease.