The EPFO also liberalised withdrawal limits — education withdrawals are allowed up to 10 times and marriage up to five times, raising it from the existing limit of a total of three partial withdrawals for marriage and education.
Published Oct 14, 2025 | 10:35 AM ⚊ Updated Oct 14, 2025 | 10:35 AM
EPFO office in Hyderabad.
Synopsis: The Employees’ Provident Fund Organisation decided to simplify the partial withdrawal provisions of the EPF Scheme by merging 13 complex provisions into a single rule categorised into three types and allowing a 100 percent withdrawal of the balance.
The Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) on Monday, 13 October, decided to simplify the partial withdrawal provisions of the EPF Scheme by merging 13 complex provisions into a single rule categorised into three types and allowing a 100 percent withdrawal of the balance.
The decision was made during the 238th meeting of the CBT in New Delhi, chaired by Union Minister for Labour & Employment and Youth Affairs & Sports, Dr Mansukh Mandaviya.
“To enhance Ease of Living of EPF members, CBT decided to simplify the partial withdrawal provisions of EPF Scheme by merging 13 complex provisions into a single, streamlined rule categorized into three types namely, Essential Needs (illness, education, marriage), Housing Needs and Special Circumstances.
Now, members will be able to withdraw upto 100% of the eligible balance in the Provident Fund including employee and employer share,” said the CBT in a press release.
The EPFO also liberalised withdrawal limits — education withdrawals are allowed up to 10 times and marriage up to five times, raising it from the existing limit of a total of three partial withdrawals for marriage and education.
Further, the requirement of minimum service has been uniformly reduced to 12 months for all partial withdrawals.
“Earlier, under ‘Special Circumstances,’ the member was required to clarify the reasons for partial withdrawals viz., natural calamity, lockouts/closure of establishments, continuous unemployment, outbreak of epidemic, etc. This often led to rejection of claims and consequent grievances. Now, the member can apply without assigning any reasons under this category,” the statement read.
A provision has also been made for earmarking 25 percent of the contributions to be maintained at all times. EPFO said this will enable a high rate of interest (presently 8.25% pa) along with compounding benefits to accumulate a high-value retirement corpus.
It is also decided to change the period for availing premature final settlement of EPF from the existing two months to 12 months and final pension withdrawal from two months to 36 months.
The organisation said that the newly introduced Vishwas scheme will benefit both employers and EPFO members by reducing litigation and legal costs, making penalties more predictable and simplifying compliance.
“Employers enjoy easier dispute resolution and lower administrative burdens, while members benefit from faster recovery of dues, quicker reinvestment of funds and improved returns. Overall, it promotes timely compliance and enhances trust in the EPF system,” it said.
The CBT also approved a Memorandum of Understanding (MoU) with India Post Payments Bank (IPPB) to provide doorstep Digital Life Certificate (DLC) services to EPS’95 pensioners at a cost of ₹50 per certificate, fully borne by EPFO.
“This initiative will allow pensioners, especially in rural and remote areas, to submit their life certificates from home through IPPB’s vast postal network, free of charge. The partnership aims to enhance ease of living for elderly pensioners, ensure timely pension continuity, enable quicker family pension initiation and improve accuracy under the Centralised Pension Payment System (CPPS),” the release said.
The Central Board has approved the selection of four Fund Managers for managing the debt portfolio of EPFO for a period of five years. The approval follows the recommendations of the Selection Committee and subsequent endorsement by the Investment Committee, comprising members of the Central Board, senior officers, and an external investment expert.
As part of EPFO 3.0, the CBT also approved a “comprehensive member-centric digital transformation framework” to modernise provident fund services.
“Implementation will proceed in phases, ensuring secure, scalable and uninterrupted services. The initiative will enable faster, automated claims, instant withdrawals, multilingual self-service and seamless payroll-linked contributions, reaffirming EPFO’s commitment to transparent, efficient and technology-driven service delivery for over 30 crore members,” the statement read.
(Edited by Muhammed Fazil.)
