New Delhi: The Employees Provident Fund Organisation (EPFO) has introduced major changes in partial withdrawal rules under the new EPFO 3.0 system. The aim is to make rules simpler, uniform, and more user-friendly. These decisions were taken by the Central Board of Trustees, chaired by Mansukh Mandaviya.
Previously, unemployed employees could withdraw 75 percent of their PF after one month of unemployment and the remaining 25 percent after two months. Now, under EPFO 3.0, employees can immediately withdraw 75 percent of their PF, but full 100 percent withdrawal is allowed only after 12 months of continuous unemployment.
Pension Withdrawals and Unemployment
Earlier, employees could withdraw their pension after two months of unemployment. Under the new rules, the waiting period has increased to 36 months (3 years). This means pension withdrawals are now possible only after a longer period of unemployment.
In case of company lockouts or closures, employees can withdraw 75 percent of their EPF corpus, while 25percent must remain in the account to maintain the minimum balance.
Withdrawals for Emergencies and Life Events
During pandemics, employees can withdraw three months of basic salary plus DA or 75 percent of PF, whichever is lower, as before. The process is now standardised and easier under EPFO 3.0.
For medical emergencies for self or family, withdrawals are allowed based on six months’ basic salary plus DA or employee contribution, but now a minimum 12 months of service is required.
Withdrawals for education and marriage have increased. Employees can now withdraw for education up to 10 times and for marriage up to 5 times, offering more flexibility than earlier rules.
Housing and Home Renovation
Previously, a minimum of 24–36 months of service was needed for house or plot expenses. Under EPFO 3.0, the minimum service period for all partial withdrawals is now 12 months, simplifying access for housing needs. Rules for home repairs remain the same but are now included in a uniform framework. Housing loan withdrawals are also faster and fully digital.
EPFO 3.0 Benefits
The biggest advantage of EPFO 3.0 is standardising the minimum 12-month service requirement for almost all partial withdrawals. This reduces confusion, makes processes smoother, and ensures employees can access their PF more efficiently.
