EPFO Issue: Owaisi's 'Savings Festival' Jibe At Govt After Employees' Provident Fund Organisation, Says '75% Withdrawal Allowed'

EPFO Withdrawal Issue: AIMIM chief Asaduddin Owaisi on Thursday slammed the Employees’ Provident Fund Organisation (EPFO) for its withdrawal limit. Taking a jibe at the government, the AIMIM leader termed it as the government's “savings festival” amidst unemployment.

"The government's 'Savings Festival' amidst unemployment: *Earlier, you could withdraw your entire PF within 1–2 months of unemployment. *Now, due to the government's “kindness,” you have to wait 1–3 years to withdraw your own money. *25% of PF is forcibly locked for 1 year. Meaning, during unemployment, you’ll have to wait a year, and even then, you can’t withdraw your full amount," his tweet read.

"The EPFO is already acting like the owner of your money: *₹54,658 crore of PF is lying “unclaimed.” * 25–35% of PF withdrawal applications get rejected," he added.

His reaction comes on an update given by the EPFO on X. The pension body posted on X. On a question why was the period for EPF withdrawal after job loss changed from 2 months to 12 months? the EPFO said the beneficiary can withdraw 75% of the amount immediately after losing the job.

The remaining 25% can also be withdrawn after remaining unemployed for 12 months, it said, adding the withdrawal of the full amount in 2 months or joining another job after 3 months does not count as continuous service and hence does not qualify for the pension because 10 years of continuous employment is required for pension. These reforms will facilitate making EPFO beneficiaries eligible for pension, the EPFO said.

EPFO Liberalises EPF Part Withdrawals

The development comes days after the board of the retirement fund body approved liberalised part withdrawals for its more than seven crore subscribers, allowing up to 100 per cent EPF withdrawal. On October 9, the Central Board of Trustees (CBT), the apex decision-making body of EPFO, headed by Labour Minister Mansukh Mandaviya, took several path-breaking decisions during its meeting.

A Labour Ministry statement said To enhance the Ease of Living of EPF members, the CBT decided to simplify the partial withdrawal provisions of the EPF Scheme by merging 13 complex provisions into a single, streamlined rule categorised into three types, namely, Essential Needs (illness, education, marriage), Housing Needs and Special Circumstances. Now, members will be able to withdraw up to 100 per cent of the eligible balance in the Provident Fund, including employee and employer share.

(With PTI inputs)