PF Account Holders May Soon Withdraw Larger Amounts Without Conditions After 10 Years

The Ministry of Labour and Employment is considering significant changes to the withdrawal rules for Employees’ Provident Fund (EPF) accounts, potentially allowing subscribers to withdraw larger sums without conditions after 10 years of service. This move aims to provide greater financial flexibility to over seven crore account holders.

 

Currently, EPF members can withdraw up to 50–70% of their accumulated savings under specific conditions such as retirement, housing needs, or medical emergencies. Under the proposed reform, subscribers completing 10 years of service may be allowed to withdraw more than the current limit without having to meet special criteria.

 

The proposal also considers raising the maximum permissible withdrawal amount for long-term account holders while retaining provisions for partial withdrawals up to three times during their service for specified needs.

 

Officials believe the change will benefit a significant number of subscribers, particularly those who require access to their savings for personal or family financial planning before retirement. The plan is also expected to improve the attractiveness of EPF as a long-term savings instrument.

 

Subscribers will still have to follow the prescribed procedure for withdrawals, which involves logging onto the EPFO website, submitting Form 31 along with Aadhaar, PAN, and bank details, and completing verification through the employer.

 

If approved, the amendment would mark one of the most substantial changes to EPF withdrawal norms in recent years, giving members easier access to their retirement savings while maintaining the fund’s core objective of providing post-retirement financial security.