I’m not convinced on anything that comes from nirmala sitaraman
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EPFO 3.0 to allow employees to increase contribution, ATM Card, Revamped Pension Scheme
If they issue ATM card, it may make ease of withdrawal. I don't think it is going to allow withdrawal without any constraints. And I think it should be that way. Retirement fund should be saved for retirement. It is so good to see size of my EPF. And I am glad I never removed it. Risk is that it is little more than 1/4 rd of my total saving and if government screws the fund someway, I will need to postpone my planned retirement.
Even with limitations it would be way better than as is process. Right now withdrawals will test the limits of your patience
Ask Finright
TF Neo
No, there isn't anything like this you can't withdraw the whole amount. but there are certain rules as this is meant for the retirement so government had made few stringent withdrawal before the retirement that employee can take benefit of!
like unemployment for more than 2 months can withdraw the whole amount
Yesterday EPFO announced some changes in withdrawals and related stuff:
upstox.com
8 major changes in EPF partial withdrawal rules and premature final settlement approved by EPFO
EPFO partial withdrawal rule changes 2025: Earlier, there were 13 provisions for which partial withdrawals from EPF were allowed. The CBT has decided to merge these provisions into just three reasons for which partial withdrawals will be allowed. More changes explained in this article.,
upstox.com
- Only three withdrawal categories:
The 13 existing partial withdrawal provisions are merged into 3 types – Essential Needs (illness, education, marriage), Housing Needs, and Special Circumstances. - Up to 100% withdrawal allowed:
Members can now withdraw the full eligible balance, including both employee and employer contributions. - Higher withdrawal frequency:
Education withdrawals allowed up to 10 times and marriage up to 5 times (earlier total limit was 3 for both combined). - Lower service requirement:
Minimum service needed for partial withdrawal reduced to 12 months for all types. - No reason needed under special circumstances:
Members don’t have to specify the reason for withdrawal (like calamity, unemployment, etc.) under this category. - Mandatory 25% minimum balance:
Members must keep at least 25% of their EPF balance untouched to maintain long-term savings and earn interest. - 100% auto settlement:
Simplified rules and zero documentation will allow complete automation of partial withdrawal processing. - Revised final settlement and pension rules:
Premature final EPF settlement period extended from 2 months to 12 months, and final pension withdrawal extended from 2 months to 36 months.
I want to know if it is still a good choice to keep the amount in EPF or withdraw and move it to some other place.
Scenario: Working individual, still around 10 years of work life ahead.
Seeing the conditions being brought in year after year, it looks like getting back our own hard earned money is going to be even more difficult in the coming years, especially from EPF. They are finding it hard to keep on going with high interest rates and at the same time payouts.
Anyone thinking on similar lines?
Scenario: Working individual, still around 10 years of work life ahead.
Seeing the conditions being brought in year after year, it looks like getting back our own hard earned money is going to be even more difficult in the coming years, especially from EPF. They are finding it hard to keep on going with high interest rates and at the same time payouts.
Anyone thinking on similar lines?
Yes, I was thinking on the same lines. I maybe have a few more working years than you left, but I feel the same. PF still gives among the highest interest rates at 8.5%, but getting that money out might turn out to be tricky, especially if the current anti-consumer and anti-worker dispensation continues to govern.
They would probably reduce the interest rates or make it even harder to make withdrawals.
Maybe it is prudent to get the money out right now. Can't trust this lot.
nikhilv0303
TF Ace
How do you plan to withdraw, while still being employed?
Sorry I’m not much aware, hence asking
You can place a withdrawal request from the EPF portal. https://unifiedportal-mem.epfindia.gov.in/memberinterface/
@rogerthat I had similar thoughts.
One thing being - since my total length of service is more than 10 years, pension contribution component is out of question. That can be withdrawn or opted for pension after 58 yrs.
On the EPF component, I just placed a request to withdraw the full amount. Not sure if it will go through. The process was completely online and no glitches or hassles. OTP came properly. All things were correct for me - kyc, aadhar linking, bank details etc.
I noticed that the epf website still follows the old withdrawal process. Whatever changes announced yesterday are not yet implemented. I have placed a request to withdraw my entire PF balance. Will update how it goes.
nikhilv0303
TF Ace
Isn’t there a reason to be given for withdrawal?
After going through the changes in detail, I understand that the new changes introduced yesterday is much better, if someone is trying to withdraw while being employed.
While being employed:
Old rule:
You can withdraw only upto a maximum of 50%, that too depending on the reason you give.
Marriage: 50%, house construction: 6 months contribution etc.
For different reasons, you need to give different supporting evidences and documents.
There are only very few reasons, which do not need any document.
Like medical reason = you need to give doctor's certificate.
New rule: (this is good)
You can straightaway withdraw 75%, whatever be the reason.
No need to even tell the reason. Just click withdraw.
No documents needed at all. Just apply for withdrawal, that's it.
You are no longer working:
Old rule:
Mark exit date from the last employer, wait for 2 months and withdraw fully.
Pension component: If you have more than 10 years (that is my case), wait till 58 years and get pension.
Pension component: If you have less than 10 years, wait for 2 months and withdraw fully.
New rule: (this is bad)
Mark exit date from the last employer, wait for 12 months and withdraw fully.
Pension component: No change, same as above. (that is my case)
Pension component: If you have less than 10 years, wait for 36 months and withdraw fully.
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nikhilv0303
TF Ace
Great.. thanks for helping me understand
Any taxation on withdrawal while being employed, in new rules?
What scam are they running in the name of easier access and full 100% withdrawal at the time of need and in the under text making it difficult to access your own money.
The way it is being presented in news just looks like a big PR message.
So many shortcomings like 25% essentially blocked for life
The 12 months wait to access your money in case of unemployment is exceptionally brutal first cut try the employee with taxes and when he loses the job don’t even let him have his money
The way it is being presented in news just looks like a big PR message.
So many shortcomings like 25% essentially blocked for life
The 12 months wait to access your money in case of unemployment is exceptionally brutal first cut try the employee with taxes and when he loses the job don’t even let him have his money
Thanks for this! Yeah so I am going to withdraw 75% as soon as this rule comes into effect. The will put that amount in some debt fund or something.
I am aware I would need to pay taxes on the returns from the fund but that is better than not being able to withdraw anything at all.
nikhilv0303
TF Ace
Is there any taxation on withdrawal?
Correct. I didn't wait for this rule to be implemented. Maybe I did a mistake. But I raised a claim yesterday citing house construction.
That is one of the reasons where we don't have to give any docs or proofs. Let me see if they reject it or not.
If it gets approved, I might get just 6 months of contribution (that is the least among total amount, and 50%).
The amount stuck with them is more than 35L and I don't want it to be hanging there.
Peace of mind is more important than 1% more returns with uncertainity of getting back the money.
If they reject my claim, then good. I can submit a new one after the changes are implemented.
Even if they approve and I get back some money now, I will raise another claim after some months to get back the remaining.
@nikhilv0303 There is no tax if your number of years in service is more than 7. Atleast that is what they say.
Cannot be 100% sure because it is EPFO. They can change the rules anytime.
Good insights .
AFAIK, No there isn't if you have completed 7 years of service in total with your current EPFO account.
nikhilv0303
TF Ace
This 7 years has to be with same employer, or if any switch in between than also it is okay?
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