EPFO Rules Change: EPFO Revises Withdrawal Rules Offering Greater Flexibility for Members

New Delhi: To ensure financial security in jobs, the Employees' Provident Fund Organization (EPFO) has made seven major changes to the withdrawal rules for its members' Provident Fund (EPF) accounts. These changes will now allow members to maximize their EPF account withdrawals when needed. 100% Withdrawal Allowed Previously, EPF members could withdraw only a limited amount. Now, the EPFO has increased this limit to allow withdrawals of up to 100 percent of the entire amount. This makes it easier to meet financial needs in emergencies or special circumstances. EPFO may hike minimum pension to Rs 2,500; Big relief likely before Diwali More Withdrawals for Marriage and Education Previously, the limits for EPF withdrawals for purposes like marriage and education were lower. Now, five withdrawals are allowed for marriage and 10 withdrawals for education. This will allow members to more easily use EPF funds for their family and educational needs. Reduction in Service Period For advance withdrawals from EPF, employees who have completed a minimum service period of 12 months can now withdraw funds. Previously, this period was longer. This will also provide quick assistance to new employees. Withdrawal Without Reason Under special circumstances, members can now withdraw EPF funds without citing any reason. This facility provides relief in times of emergency financial needs. [caption id="attachment_163208" align="aligncenter" width="1280"] EPFO Allows Full PF Withdrawal[/caption] Minimum Balance and Interest It is mandatory to maintain a minimum balance of 25 percent in the EPF account. This amount earns 8.25% interest. The advantage is that more funds will be available at the time of retirement. Document-Free and Automatic Withdrawals No documentation or paperwork will be required to withdraw EPF funds. Withdrawals will be completely automatic and paperless. Final Withdrawal Limit Increased Previously, the waiting period for final withdrawal from an EPF account was 2 to 12 months. Now, this limit has been increased to 2 to 36 months. This allows members to withdraw as per their planning for a longer period. EPFO Set to Launch ATM Withdrawals for PF Accounts by 2026 These changes in the EPFO provide employees with financial flexibility, a simplified withdrawal process, and increased retirement security. Now, EPF funds can be used more efficiently according to their needs and plans.