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Prolonged wait to withdraw your own money! EPFO’s ‘minimum time’ rule sparks outrage

Earlier, employees could withdraw their balance if they were unemployed for two months. However, according to the new regulation, they have to wait at least 12 months.

South First Desk

Published Oct 15, 2025 | 10:00 AM ⚊ Updated Oct 15, 2025 | 10:00 AM

EPFO

EPFO. (iStock)

Synopsis: After the EPFO announced changes in its rules regarding withdrawals, several people have expressed dissent over changing the minimum time required to withdraw funds in cases of unemployment.

After the Employees’ Provident Fund Organisation (EPFO) announced changes in its rules regarding withdrawals, several people have expressed dissent over changing the minimum time required to withdraw funds in cases of unemployment.

Earlier, employees could withdraw their balance if they were unemployed for two months. However, according to the new regulation, they have to wait at least 12 months.

Similarly, employees have to wait 36 months for the full withdrawal of their pension compared to two months earlier. Further, people have also raised concerns over the retention of 25 percent of the total balance in the EPF account.

Trinamool Congress Rajya Sabha MP Saket Gokhale urged the scrapping of the new rules.

“How is a normal middle-class person expected to survive like this? How will a salaried person who loses their job meet their expenses for a FULL YEAR when their EPF withdrawal is blocked? It is clear that the Modi Govt is expecting a drastic rise in unemployment due to its terrible economic policies. These new rules locking people’s EPF are the signs of a panicked govt trying to prevent a run on the EPFO. Salaried people are being punished for the Modi Govt’s mishandling of the economy,” he wrote in a post on X.

“I urge Minister @mansukhmandviya ji to scrap these new draconian EPF rules IMMEDIATELY,” he added.

Also Read: EPFO liberalises partial withdrawals; allows 100 percent withdrawal of balance

‘Bureaucratic cruelty’

An X user, Suraj Kumar Talreja, claimed that the new regulations are bureaucratic cruelty against employees.

“EPFO now thinks your own money is a luxury. You work for years. Every month, a part of your salary is forcefully deducted as PF, no choice, no say. Earlier, if you weren’t employed for 2 months, you could withdraw your PF. Now they’ve made it 12 months. And pension withdrawal? 36 months,” he wrote.

“So if you lose your job today, you can’t touch your own money for a year. How is this fair? You save because they force you to, and when you actually need it, they lock it away. This isn’t reform. It’s bureaucratic cruelty against employees,” he added.

Journalist Latha Venkatesh noted that the policy was unfair.

“This is seriously unfair. How many pensioners can wait three years especially when they need their money most. Or one year, if one loses one’s job! This has to be changed, or will get taken to court,” she wrote on X.

‘Targeting the savings of the salaried class’

AK Mandhan, who claims to be a stock market coach on his X bio, said that the government is targeting the savings of the salaried class, first by taxing EPFO money and now by not letting them withdraw funds.

“First Modi Govt started taxing portion of EPFO money which used to be completely tax free earlier. Now they will not let you withdraw your own money for 36 months even in the case of losing a job. When Govt is done emptying their own pocket after distributing freebies in each election, they’re coming after hardworking salaried class savings. With frequent layoffs and less job in market, this is how Govt is supporting its taxpayers. I’m speechless,” he wrote on X.

“#EPFO now treats your savings like a privilege, not your right. You work for years. Every month, a slice of your salary is taken away as Provident Fund — no consent, no choice. Earlier, if you were unemployed for just 2 months, you could access your PF. Now? You’ll have to wait 12 months. And for your pension fund — a shocking 36 months. So if you lose your job today, you’re locked out of your own money for an entire year,” he wrote in another X post.

“What kind of “protection” is this? You’re forced to save, but when you actually need those savings, you’re denied access. This isn’t policy reform — it’s bureaucratic punishment disguised as discipline,” he added.

Also Read: Why RCC Thiruvananthapuram’s pension scheme sparks protests and court battles

Demands common sense and accountability

Another X user, Venkatesh Alla, said policymakers should have common sense and accountability.

“When someone loses a job or faces an emergency, they need their own money immediately, not after 12 months of ‘interest accumulation’ and bureaucratic drama,” he wrote.

“But here comes @officialepfo with another genius idea, lock 25% of our hard-earned money as “minimum balance” and then call it “ease of living.” Ease of living for whom exactly? For the babus sitting in air-conditioned offices? This is what happens when uneducated, clueless politicians and policymakers make financial decisions. They don’t understand the pain of the salaried class, the desperation of someone who just lost a job, or the urgency of real life.”

“Elect illiterates who survive on freebies, Yojana’s and reservations, and they’ll keep trapping citizens in red tape while calling it “reform.” We don’t need slogans, we need common sense and accountability,” he added.

(Edited by Muhammed Fazil.)

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