The Union Minister for Labour and Employment, Mansukh Mandaviya, on Thursday announced major relaxations in the Employees’ Provident Fund Organisation (EPFO) withdrawal rules, making it easier for employees to access their savings in times of need.
Speaking to ANI, Mandaviya said the new measures aim to simplify the EPF withdrawal process and strengthen the social security framework for workers across the country.
Key Change: Immediate Access to 75% of EPF Balance
Under the revised rule, employees who lose their jobs will now be allowed to withdraw up to 75% of their EPF corpus immediately. The remaining 25% can be withdrawn after one year, ensuring that their 10-year service record remains intact for pension eligibility.
“EPF withdrawal has been made simpler now. If someone loses their job, they can withdraw 75% of their amount immediately, and after one year, the remaining amount will be available. The idea behind retaining 25% for a year is to maintain service continuity and ensure pension eligibility, thereby strengthening social and economic security,” Mandaviya told ANI.
Extended Window for Fund Withdrawal
The government has also extended the withdrawal window for employees who lose their jobs — from two months to one year. This allows members more time to find new employment while maintaining job continuity and social security benefits.
Push for Wider EPFO Coverage
In a bid to bring more workers under the EPFO’s ambit, the government has launched a new initiative enabling establishments that were previously non-compliant to register with a nominal penalty. This move is expected to expand the reach of social security benefits to a wider workforce.
Ease for Elderly and Remote Beneficiaries
To make services more accessible for senior citizens and members in remote areas, the EPFO has entered into a Memorandum of Understanding (MoU) with India Post. Under this partnership, postal staff will help verify and issue life certificates at beneficiaries’ homes, eliminating the need for them to visit EPFO offices.
This doorstep service is expected to benefit lakhs of pensioners, ensuring convenient and timely receipt of EPFO benefits, according to ANI.