The Employees’ Provident Fund Organisation (EPFO) has made several important changes this year to the rules for partial and full PF withdrawals.
The goal is to make the system simpler, faster, and more transparent for members.
These updates allow employees to access their PF savings more easily during different life situations.
Contents
Withdrawal Rules After Leaving a Job
Earlier, employees could withdraw 75% of their PF balance after one month of unemployment and the remaining 25% after two months.
Under the new rules, 75% of the PF balance can be withdrawn immediately after leaving a job.
However, the remaining 25% can only be withdrawn after 12 months of continuous unemployment.
Pension Withdrawal After Job Loss
Earlier, pension withdrawal was allowed after two months of unemployment.
Now, the waiting period has been increased.
Employees can withdraw their pension amount only after 36 months of unemployment following job loss.
PF Withdrawal for Medical Treatment
For medical needs, the earlier rule allowed withdrawal of six months’ basic salary plus dearness allowance or the employee’s contribution, whichever was lower.
This rule continues, but there is now a minimum service requirement of 12 months to use this facility.
Education and Marriage Expenses
Earlier, employees could withdraw up to 50% of their PF contribution after seven years of service.
Three withdrawals were allowed for education and two for marriage.
Under the new rules, the limits have been increased.
Employees can now make up to 10 withdrawals for education and five withdrawals for marriage-related expenses.
Buying or Building a House
Earlier, PF withdrawal for buying a house, building a house, or purchasing land required 24 to 36 months of service.
Now, EPFO has reduced this requirement.
A minimum service period of 12 months is enough for all such partial withdrawals.
The withdrawal limit remains up to 90% of the total PF balance, subject to conditions.
PF Withdrawal if a Company Shuts Down
Previously, employees could withdraw a large part of their PF if a company closed, sometimes up to the full amount.
Under the new rule, employees can withdraw only 75% of their PF balance, while 25% must remain in the account to maintain a minimum balance.
Withdrawal During a Pandemic or Emergency
During a pandemic-like situation, employees can still withdraw three months’ basic salary plus dearness allowance or 75% of the PF balance, whichever is lower.
The rules have now been clarified further to make the process easier and quicker for members.
PF Withdrawal After a Natural Disaster
Earlier, withdrawals during natural disasters were limited to ₹5,000 or 50% of the employee’s contribution, whichever was lower.
Now, a minimum service period of 12 months is required for such withdrawals as well.
This rule applies to all partial withdrawal categories.