Need Cash? Now withdraw 100% of your PF balance before retirement; Here’s the full breakdown

EPFO now permits 100% PF withdrawal, including employer contribution. Partial withdrawal rules are simplified, auto-claim processing introduced, and a 25% balance must be retained for interest. These changes offer greater financial flexibility and faster access to funds for employees.

New Delhi: Previously, the entire PF account balance could only be withdrawn upon retirement or prolonged unemployment. However, the EPFO ​​has now decided that employees can withdraw not only their own contribution but also their employer's contribution from their account.

This decision was taken at the 238th Central Board of Trustees (CBT) meeting of the EPFO ​​held in New Delhi, chaired by Labor and Employment Minister Mansukh Mandaviya.

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Partial Withdrawal Rules Simplified

Previously, there were 13 different rules and conditions for partial withdrawal, which were quite complex. Now, these have been divided into three simple categories:

Essential Needs: Such as illness, education, and marriage

Housing Needs

Special Circumstances

Withdrawals are now permitted up to five times for marriage and up to ten times for education, compared to the previous limit of only three. Additionally, the minimum service period for partial withdrawals has been reduced to 12 months.

Importantly, there will no longer be a need to provide a reason in "special circumstances," reducing the likelihood of claim rejection.

Interest Will Continue At 25% Balance

EPFO has also decided to maintain at least 25% of the account balance as a "minimum balance." This will benefit from an 8.25% interest rate and compounding, helping to build a strong retirement corpus.

Paperless and Auto Claim Process

The PF withdrawal process has now been simplified. EPFO ​​has decided to implement a 100% auto-settlement system, eliminating the need for document submission. This will ensure faster disbursement and transparency.

The deadline for final PF withdrawals has been extended from 2 months to 12 months. The pension withdrawal limit has been increased to 36 months.

Employees will gain financial flexibility

These decisions by the EPFO ​​will give employees greater control over their finances. They will no longer have to go through lengthy and complicated procedures for their own funds.

This will allow them to withdraw funds at their own pace, as per their needs, and maintain secure investments for their future. These changes made by the EPFO ​​will prove to be very beneficial for employees.

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PF withdrawals have now become easier, faster, and transparent. Additionally, the option of preserving interest and retirement funds is also available. This step will not only provide immediate financial assistance but also ensure future security.