EPFO Members Can Now Withdraw 100% from PF Accounts
New Delhi (The Uttam Hindu): Ahead of Diwali, the Employees’ Provident Fund Organisation (EPFO) announced that members can now withdraw 100% of the eligible amount in their PF account, including both employee and employer contributions.
This decision was taken during the 238th meeting of the Central Board of Trustees (CBT) held in the national capital. The move will benefit over 7 crore PF account holders, allowing them full withdrawal from their EPF accounts.
Previously, full withdrawal was allowed only in cases of retirement or unemployment. For unemployment, members could withdraw 75% of the balance after one month and the remaining 25% after two months. Full withdrawal was already allowed upon retirement without any limits.
The CBT, chaired by Labour Minister Mansukh Mandaviya, also made several key decisions regarding partial withdrawals:
For land purchase, new home purchase/construction, or EMI payments, EPF members could previously withdraw up to 90% of the balance.
To simplify withdrawals and ease the process for members, 13 complex partial withdrawal provisions have now been consolidated into one streamlined rule categorized into:
- Essential Requirements – illness, education, marriage
- Housing Needs
- Special Circumstances
Other key relaxations include:
- Education withdrawals: now 10 times (previous limit was 3)
- Marriage withdrawals: now 5 times (previous limit was 3)
- Minimum service period for any partial withdrawal reduced uniformly to 12 months
This reform aims to make EPF funds more accessible to members for critical personal needs and simplify the withdrawal process.