New Delhi, Oct 14: In a landmark decision ahead of Diwali, the Employees’ Provident Fund Organisation (EPFO) has approved withdrawal of up to 100 per cent of the ‘eligible balance’ in Provident Fund accounts, including both employee and employer contributions, officials said on Tuesday.

This move, announced during the 238th meeting of the Central Board of Trustees (CBT), is set to benefit over seven crore EPFO subscribers across India.

Full Withdrawal Now Beyond Retirement and Job Loss

Previously, complete withdrawal of PF funds was restricted to retirement or prolonged unemployment. Members could access 75 per cent of their balance after one month of joblessness and the remaining 25 per cent after two months. Retirement allowed full withdrawal without limits. The new provision now enables members to withdraw their entire eligible balance without such conditions.

Simplified Partial Withdrawal Norms

To enhance ease of access, the CBT has merged 13 complex partial withdrawal provisions into three streamlined categories:

• Essential Needs: Illness, education, marriage

• Housing Needs: Land purchase, home construction, EMI repayment

• Special Circumstances: Other exceptional cases

The withdrawal limits have also been liberalised. Members can now make up to 10 withdrawals for education and up to 5 for marriage, a significant increase from the previous combined limit of three.

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Minimum Service Requirement Reduced

In another progressive step, the minimum service requirement for partial withdrawals has been uniformly reduced to just 12 months. Additionally, EPFO has introduced a ‘Minimum Balance’ rule, mandating that 25 per cent of contributions remain untouched in the member’s account at all times.

Union Labour Minister Mansukh Mandaviya, who chaired the CBT meeting, hailed the decisions as transformative for workers’ financial flexibility and overall well-being.

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