The Employees’ Provident Fund Organisation (EPFO) has approved major reforms to give members more flexibility and access to their funds. Subscribers can now withdraw up to 100% of their EPF balance, covering both employee and employer contributions. The new framework merges 13 withdrawal provisions into three simplified categories — Essential Needs, Housing, and Special Circumstances.
Under these, withdrawals for education and marriage have been liberalized — up to 10 times for education and 5 times for marriage, compared to earlier combined limits. The minimum service requirement for all withdrawals is now just 12 months, making the system more inclusive and accessible.
Safeguards and Simplified Processes
Members withdrawing funds under Special Circumstances will no longer need to specify reasons, eliminating one of the key causes of claim rejections. However, to maintain long-term financial security, 25% of the member’s EPF balance will be retained as a minimum reserve. The move ensures members continue earning EPFO’s 8.25% annual interest, fostering corpus growth.
The simplified structure will also enable 100% auto-settlement of claims — no documentation required — enhancing ease of living for millions of employees nationwide.
Vishwas Scheme to End Long-Pending Litigations
The EPFO board has also approved the Vishwas Scheme, designed to reduce litigation over penal damages for delayed PF remittances. With over 6,000 cases worth ₹2,406 crore pending, the scheme introduces graded penalty rates, starting as low as 0.25% for delays up to two months. Upon compliance, pending cases will be closed, reducing the legal burden on employers.
EPFO 3.0: A Digital Leap for Faster Services
To strengthen efficiency and transparency, EPFO launched EPFO 3.0, a digital transformation initiative integrating core banking, cloud, and API-first systems. The platform will enable instant withdrawals, multilingual self-service, and automated settlements, ensuring faster and smoother service delivery.
Additionally, an MoU with India Post Payments Bank will allow pensioners to submit Digital Life Certificates (DLCs) from home, a boon for elderly citizens in rural areas.
These comprehensive reforms underline EPFO’s commitment to modernization, inclusivity, and member-centric governance.
