The Ministry of Labour and Employment has announced a major update to the Employee Provident Fund withdrawal process, as reported by The Economic Times.
EPF subscribers will soon be allowed to withdraw up to 75% of their total provident fund balance using ATMs and UPI platforms.
EPF Withdrawals to Allow Up to 75% Access via ATMs and UPI
The main goal of this change is to make access to EPF funds faster and simpler by reducing paperwork and procedural delays.
Union Labour Minister Mansukh Mandaviya confirmed in an interview with ABP News that this new withdrawal facility is expected to be available by March 2026.
Once implemented, EPF members will be able to receive funds instantly in their linked bank accounts through UPI or withdraw cash directly from ATMs.
This marks a significant shift from the current system, which requires multiple forms and approvals before funds are released.
Recent reforms have also expanded how much money members can withdraw from their EPF accounts.
Earlier, subscribers could withdraw only their own contributions along with the interest earned on them.
Under the revised rules, withdrawals now include the employer’s contribution and its interest, allowing access to up to 75% of the total EPF corpus in situations such as unemployment.
These changes are intended to provide faster financial relief to members during times of need.
The government has also simplified eligibility conditions for EPF withdrawals.
Previously, different withdrawal reasons had different minimum service requirements.
Now, a uniform eligibility period of 12 months of service applies to all withdrawal purposes.
This new rule replaces the earlier system that had 13 different category-based conditions, making the process clearer for subscribers.
PF Contributions Above ₹15,000 Made Voluntary, Clarifies Labour Ministry
The article also references a separate clarification by the Labour Ministry stating that provident fund contributions on wages above ₹15,000 are now voluntary.
In certain situations such as retirement after the age of 55, permanent disability, voluntary retirement, or moving abroad, EPF subscribers are permitted to withdraw their entire corpus.
In cases of unemployment, members can withdraw 75% of their EPF balance immediately.
The remaining 25% can be withdrawn after 12 months if the individual continues to remain unemployed.
Overall, the integration of EPF withdrawals with ATM and UPI systems is expected to reduce administrative burdens and significantly improve ease of access to funds.
When combined with standardised eligibility rules and higher withdrawal limits, these reforms aim to offer EPF members quicker and more straightforward access to their savings.
The article includes a disclaimer stating that the content is meant only for educational purposes and does not offer personal or investment advice.
It clarifies that any securities or companies mentioned are examples and should not be treated as recommendations.
Readers are advised to conduct their own research before making investment decisions.
It also reminds readers that investments in the securities market carry risks and that all related documents should be read carefully before investing.
