EPF withdrawal rules and freight for members
In a cornered move, the Employees’ Provident Fund Organisation (EPFO) has relaxed its EPF withdrawal rules for 2025, allowing members to withdraw up to 100% of their provident fund balance. The decision, taken at the 238th Central Board of Trustees (CBT) meeting, aims to simplify the withdrawal process, enhance the ease of living of members and provide less financial flexibility in important life events.
Three simplified orders for EPF withdrawal
EPF has consolidated 13 different withdrawal issues into just three simplified orders – essential requirements (illness, education, marriage), casing requirements and special circumstances. The move removes confusion and reduces paperwork. Under the new rules, members will be able to withdraw money more smoothly without having to navigate through multiple sections for important life events, which will significantly improve the stone experience.
Withdrawal of Rs 100 and liberalisation of limits
Members can now withdraw the entire eligible balance in their EPF account, which includes both the hands and employer benefits. The withdrawal limits have been increased — education-related recession is now allowed up to 10 times, and marriage-related recession is 5 times higher than the earlier combined limit of three times. These relaxed limits are designed to provide members with the ability to deposit their savings faster as per their needs.
Minimum service requirement reduced
EPFO has marginally reduced the minimum service requirement for partial recession to just 12 months, from five to seven times earlier. Also, under the ‘Special Circumstances’ order, members are no longer required to mention the reason for withdrawal, barring unwarranted authentication and the chances of rejection of claims have been reduced.
New EPF minimum balance rule introduced
A new minimum balance rule allows members to maintain at least 25 benefits in their EPF account at all times. This ensures long-term corpus growth and provides flexibility to members to withdraw money as per their needs. With the current EPF interest rate at 8.25, this rule helps members to balance their emulsion interest benefits and withdrawal funds.
EPFO launches Vishwas scheme to reduce action
EPFO’s new ‘Vishwash Scheme’ aims to reduce the huge accumulation of action related to delayed remittance of provident fund funds through fraudulent means. Under this measure, corrective compensation will now be levied at a flat rate of $1 per month, which was earlier over $25. The move is expected to resolve thousands of pending cases and increase compliance among employers.
EPFO 3.0 digital transformation for faster services
As part of the modernisation, EPFO ​​has launched an upcoming generation digital framework EPFO ​​3.0. It integrates a core banking system, API-first armature and PAL-native services to provide faster claim settlement, multilingual voice-service options and seamless payment-linked benefits. This upgrade will enable 100 automated claim agreements, allowing members to access funds seamlessly without any hassles while stuck at home.
RBI recommendations and fund management reforms
EPFO will soon constitute a commission to review RBI recommendations on fund management and investment diversification. RBI has suggested adding exposure to equities and refining risk management practices. Meanwhile, four fund managers – SBI Finance, HDFC AMC, Aditya Birla Sun Life AMC and UTI AMC – have been appointed to manage EPFO’s debt portfolio for the next five terms.
Also Read: PM Awas Yojana 2025: New Beneficiary List Released
Creating a strong leverage future for 30 crore members
With these sweeping reforms, EPFO ​​is modernising its approach to managing the savings of over 30 crore members. From flexible provisioning to digital transformation and reduction in legal disputes, the 2025 reforms mark a new chapter in India’s social security system. These initiatives reiterate EPFO’s responsibility to balance financial availability with sustainable withdrawal growth for all employees.
