- By Shibra Arshad
- Tue, 14 Oct 2025 04:17 PM (IST)
- Source:JND
EPFO 3.0 Update: The Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) has approved a major reform to enhance the ease of living for employees, simplifying the partial withdrawal provisions under the EPF scheme.
Under the new reform, the board has consolidated 13 rules into one streamlined framework, making it easier for employees to withdraw their money. The EPF has come up with five major updates, which are as follows-
Partial Withdrawal Now Under Three Categories
The Board has reorganised the categories under which partial withdrawals were being done into three easy-to-understand categories. These three categories are Essential Needs, which include illness, education, and Marriage. The other two categories are housing needs and special circumstances. Earlier, there were 13 provisions instead of these categories.
Higher Withdrawal To 100%
Members are now eligible to withdraw up to 100 per cent of the eligible provident fund balance. The amount can include both employees' and employers’ contributions. Now, a member can withdraw an amount up to ten times for educational purposes and up to 5 times for marriage. Earlier, these withdrawal limits were up to 3 withdrawals for both purposes.
Now Explanation For ‘Special Circumstances’
Members withdrawing money under special circumstances will not have to reveal the ‘special’ situation. The funds can now be withdrawn without any justification or reasons, decreasing the chances of rejection and ensuring faster access to money.
Minimum Balance Rule Revised With Document-Free Settlement
Members need to keep 25 per cent of their contributions in their account, so they can still earn interest and have a retirement fund. No document submission will be needed for withdrawal, and claims will be processed automatically, ensuring quick disbursal. Member will now have more time to withdraw their fund after retirement.
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Minimum Service Requirement Reduced
Earlier, there were varying timelines of service period for partial withdrawal. Now this has been uniformly reduced to 12 months of service. Members with 1 year in service become eligible for a partial withdrawal.