Image

EPFO Relaxes the provisions of the provident funds, will permit full withdrawal

October 18, 2025
  • The Employees Provident Fund Organisation (EPFO) has granted significant reforms to streamline provident fund withdrawals and enhance the services to the members at the 238 th CBT meeting led by the Labour Minister Mansukh Mandavia.
  • Key Highlights
  • ✅ Streamlined Withdrawal Regulations.
  • 13 rules have been combined into 3 groups:
    • Fundamental Needs (illness, marriage, education)
    • Housing Needs
    • Special Circumstances
  • Withdrawal of full EPF (100%) , including that of the employer.
  • Education withdrawal: 10 times or less.
  • Marriage breaking: 5 times.
  • Minimum service requirement: All shortened to 12 months.
  • Special circumstances did not need any reason as to why withdrawals were made.
  • At least 25% EPF balance should be left to receive an interest of 8.25/year and secure retirement funds.
  • Automatic settlement of the claims - no paperwork.
  • last withdrawal waiting period:
    • EPF: increased from 2 to 12 months
    • Pension (EPS): from 2 to 36 months
  • Scheme of Legal Disputes Vishwas.
  • Targeted at settling 2406 crore penal damage cases (6,000 court cases).
  • Penal damages rationalised:
    • 1% per month (standard rate)
    • 0.25% (delay up to 2 months)
    • 0.5% (delay up to 4 months)
  • Period of scheme: 6 months which can be extended to another six.
  • The section covers of the EPF Act under Section 14B.
  • 🌐 Digital Reforms & Services
  • Enter into a tie up with India Post Payments Bank (IPPB) to provide Digital Life Certificates (DLC) to EPS-95 pensioners at a cost of 50 (which is paid by EPFO).
  • The core banking and cloud technology to launch EPFO 3.0:
    • Instant claim settlements
    • Multilingual self-service
    • Auto payroll contributions on 30 crore members.
  • Four new fund managers engaged to manage EPFO investments in debt.
  • About EPFO
  • Under: Ministry of Human Resource and Emiratisation.
  • Headquarters: New Delhi
  • CEO: Ramesh Krishnamurthi
  • Deals with: EPF, EPS (Pension), and EDLI (Insurance).
  • These reforms are meant to increase

Month: 

Category: