EPFO Clarifies PF Withdrawal Rules: 75% Allowed Immediately, Full Payout After A Year
The Employees’ Provident Fund Organisation ( EPFO ) has clarified its withdrawal rules after widespread confusion over the revised norms announced earlier this week. According to the latest statement, members are allowed to withdraw 75 per cent of their provident fund balance immediately after leaving a job, while the remaining amount can be taken out after one year of unemployment.
A statement from the labour ministry noted, “Seventy-five per cent of the amount can be withdrawn immediately after leaving the job, and the full amount can be withdrawn after being unemployed for one year. Frequent withdrawals earlier caused breaks in service, leading to rejection of many pension cases. At the time of final settlement, employees were left with very little money.”
Why the clarification was issued
On Monday, EPFO’s revised withdrawal norms triggered criticism across social media, with many claiming that workers would now need to wait 12 months to withdraw their money instead of the earlier two-month window. The latest announcement aims to address this confusion.
A statement from the labour ministry noted, “Seventy-five per cent of the amount can be withdrawn immediately after leaving the job, and the full amount can be withdrawn after being unemployed for one year. Frequent withdrawals earlier caused breaks in service, leading to rejection of many pension cases. At the time of final settlement, employees were left with very little money.”
Why the clarification was issued
On Monday, EPFO’s revised withdrawal norms triggered criticism across social media, with many claiming that workers would now need to wait 12 months to withdraw their money instead of the earlier two-month window. The latest announcement aims to address this confusion.
Next Story