EPFO Says You Can Withdraw Your PF, But 25% Must Stay Put

The Employees’ Provident Fund Organisation (EPFO) has made it easier for members to withdraw up to 100% of their eligible PF balance, including both employee and employer contributions.

However, members must still keep 25% of their contributions in the account as a minimum balance in the account at all times, continuing to earn interest at 8.25% per year. The decision was made at the 238th Central Board of Trustees (CBT) meeting in New Delhi.

Previously, full PF withdrawals were allowed only for unemployment or retirement—75% after one month of job loss and the remaining 25% after two months. Partial withdrawals were capped at 90% for housing, land purchase, or loan repayment.

Under the new rules, EPFO members can access their entire eligible balance when needed, subject to updated conditions. The move aims to simplify fund access while maintaining safeguards for retirement savings.

The board merged 13 withdrawal conditions into three categories: essential needs, housing, and special circumstances. Education can be withdrawn up to 10 times, marriage up to 5 times, and no reasons are needed for special circumstances.

Other measures include extending premature pension withdrawal periods (final settlement from 2 to 36 months) and launching initiatives like the Vishwas Scheme, Doorstep Digital Life Certificates, and EPFO 3.0 to improve access and flexibility.

The EPFO also approved four fund managers—SBI Funds, HDFC AMC, Aditya Birla Sun Life AMC, and UTI AMC—to manage its debt portfolio for five years, ensuring professional oversight.