The Employees’ Provident Fund Organisation (EPFO) has simplified its partial withdrawal rules. It combined 13 clauses into three main categories: Essential Needs, Housing Needs, and Special Circumstances. The reform makes withdrawals faster, simpler, and more transparent for nearly 30 crore members who hold Rs 30 lakh crore collectively.
Under EPFO 3.0, members can withdraw up to 75 per cent of their total balance while keeping at least 25 per cent for retirement. The minimum service requirement is now 12 months for all withdrawals, replacing the previous rules that varied by purpose.
Members no longer need to submit proof for Special Circumstances withdrawals, reducing paperwork. EPFO has also increased limits for education and marriage withdrawals to 10 and 5, respectively, giving more flexibility to members.
Stricter rules apply to final settlements. Members can apply for early settlement only 12 months after leaving a job, and pension withdrawals are allowed 36 months later. Full withdrawals after job loss are exempt from the 25 per cent minimum balance. While the changes improve efficiency, they may delay access for unemployed workers.
