EPFO Enhances Member Benefits: Increased Withdrawal Limits for Education (10x) and Marriage (5x) Available.

In a move set to provide greater financial flexibility to its over seven crore subscribers, the Employees' Provident Fund Organisation (EPFO) has significantly liberalized its partial withdrawal rules. The Central Board of Trustees (CBT), led by Labour Minister Mansukh Mandaviya, approved the changes during its recent meeting, marking a major reform in accessing provident fund balances.

The revised regulations, which simplify and streamline existing withdrawal provisions, now allow members to withdraw up to 100% of their eligible EPF balance. This includes both the employee's and employer's contributions.

One of the key highlights of these changes is the eased withdrawal limits for education and marriage. EPFO members can now withdraw up to 10 times their existing balance for education and 5 times for marriage. This is a significant increase from the previous combined cap of three partial withdrawals for both purposes.

To further enhance accessibility, the EPFO has reduced the minimum service requirement for all types of withdrawals to a uniform 12 months. Earlier, the minimum service period was 5 years for housing and 7 years for education and marriage.

The EPFO has also streamlined the withdrawal process by merging 13 complex provisions into a single, clear framework categorized under three heads: Essential Needs, Housing Needs, and Special Circumstances. Essential needs cover illness, education, and marriage.

Under the "Special Circumstances" category, members will no longer be required to specify the reasons for their withdrawal. This eliminates a major cause of claim rejections and grievances, as previously, members had to provide explanations such as natural disasters, unemployment, or epidemics.

To safeguard long-term retirement savings, the EPFO has introduced a provision that earmarks 25% of the member's account contributions as a minimum balance. This ensures continued accumulation of retirement savings, allowing members to benefit from EPFO's high interest rate of 8.25% per annum and compounding returns.

In addition to these changes, the CBT has also decided to increase the time limit for premature final settlement of EPF and final pension withdrawal. The period for availing premature final settlement has been increased from the existing 2 months to 12 months, and final pension withdrawal from 2 months to 36 months.

These liberalized withdrawal rules and simplification of processes are expected to significantly enhance the ease of living for EPFO members, allowing them to meet their financial needs without compromising their retirement savings. The EPFO's digital transformation plan, known as EPFO 3.0, aims to provide faster, automated services, further improving the overall experience for its subscribers.


Written By
Yash Menon, an aspiring journalist with a keen interest in investigative reporting and a genuine passion for sports, is committed to factual storytelling. Having recently completed his journalism degree, Yash is eager to apply his skills professionally. He is particularly passionate about amplifying the voices of underrepresented communities and exploring complex social issues with integrity and depth, drawing parallels from the dedication found in sports.
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