In a landmark move, the Employees’ Provident Fund Organisation (EPFO) has announced sweeping reforms to simplify and liberalise provident fund (PF) withdrawals, benefiting over 7 crore subscribers. The reforms were approved by the Central Board of Trustees (CBT) on October 13, 2025, under the chairmanship of Union Labour Minister Mansukh Mandaviya.
Under the new framework, EPFO members can now withdraw up to 100% of their eligible PF balance—comprising both employee and employer contributions—while maintaining a 25% minimum balance for future retirement benefits.
The 13 existing withdrawal provisions have been consolidated into three simplified categories:
- Essential Needs: For illness, education, or marriage.
- Housing Needs: For home purchase or construction.
- Special Circumstances: For unemployment, calamities, or epidemics—now without the need to declare a reason.
Education and marriage withdrawals are now allowed 10 and 5 times respectively, compared to a combined limit of 3 earlier. The minimum service requirement for all partial withdrawals has been reduced to 12 months.
Further, the settlement timelines have been extended—EPF final settlements from 2 to 12 months, and pension withdrawals from 2 to 36 months—offering greater flexibility during job transitions or delayed retirements.
The system will also support auto-settlement with minimal documentation, ensuring faster processing and fewer rejections.
Additionally, the CBT has approved the appointment of SBI Funds Management, HDFC AMC, Aditya Birla Sun Life AMC, and UTI AMC as fund managers for EPFO’s debt investment portfolio for the next five years.
These reforms mark a significant step toward enhancing ease of living, promoting financial flexibility, and ensuring secure, growth-oriented fund management for India’s workforce.
