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News Topical, Digital Desk : The Employees' Provident Fund Organization ( EPFO ) has provided significant relief to employees by amending its rules. EPFO members will now be able to withdraw up to 100% of their PF account balance. However, the EPFO has imposed a condition. According to the EPFO, at least 25% of the balance in the account must remain untouched to ensure some savings for retirement. This means you must maintain a minimum balance of 25% in your account. Furthermore, the time limit for withdrawing the entire amount after losing a job has been extended from two months to 12 months. Furthermore, pension (EPS) withdrawals will now require a 36-month wait. The government states that these changes are designed to make PF withdrawals easier, digitally transparent, and secure long-term savings.
Why is the new rule of EPFO special?
EPFO members can now withdraw up to 100% of their entire "eligible balance" (which includes both employee and employer shares) for essential reasons. However, 25% of the total EPF amount must always be maintained in the account. This ensures members have a basic balance that continues to earn interest and supports long-term savings.
What was in the old rules of EPFO?
Previously, withdrawals were only allowed for specific reasons, such as education, home purchase, marriage, or illness. Each reason had different rules, such as the required years of service, conditions, and limits.
Discussion on increasing EPFO pension
At a meeting held in Delhi on October 13, 2025, Union Labor Minister Mansukh Mandaviya stated that the government was considering increasing the minimum pension by ₹1,000 per month. Although it was not on the agenda, trade unions strongly raised the issue at the meeting. The minister said the Cabinet was actively considering the proposal.
Important things for EPF subscribers!
- Now 100% withdrawal from PF is possible, but it is necessary to maintain a minimum balance of 25%.
- The unemployment period for full withdrawal is fixed at 12 months and 36 months for EPS.
- Withdrawal process simplified – now divided into just 3 categories instead of 16.
- Digital systems – Passbook Lite, Aadhaar linking and face authentication will speed up the process.
- PF transfer on job change will now happen automatically if UAN and Aadhaar are linked.
- Faster claim settlement – Now amounts up to Rs 5 lakh will be settled automatically.
Why did EPFO make these changes?
- EPFO says these rules will strike a balance between "ease of access and economic prudence".
- The organization's goal is to allow people to withdraw money when needed, but keep their retirement savings safe.
- This step has been taken under the EPFO Vishwas Scheme to resolve old disputes, pending claims and unclaimed accounts digitally.
What should EPFO members do?
- Link your UAN with Aadhaar.
- Avoid early withdrawals, as the full amount will now be available only after 12 months.
- Check your account details through Passbook Lite or Umang app.
- Update KYC, especially for accounts created before October 2017.
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