The Employees’ Provident Fund Organisation ( EPFO ) has made a significant announcement that will bring relief to salaried employees. The withdrawal limit for provident funds has been increased from Rs 50,000 to Rs 1 lakh, and contributors can now withdraw funds within the first six months of starting a new job.
“If you are an EPFO contributor and there’s a family emergency, you can now withdraw a higher amount. The one-time withdrawal limit has been raised,” said Union Labour and Employment Minister Mansukh Mandaviya.
Read More: EPFO playing key role in providing social security, financial stability to millions: Union Minister
Key Changes in Withdrawal Rules
The government has also eased the conditions for withdrawals, allowing employees to access their provident fund savings shortly after joining a new organisation. “Previously, you had to wait longer, but now, PF contributors can withdraw even in the first six months… it’s their money,” Mandaviya added, emphasizing that the changes are part of updates introduced within the first 100 days of the government’s tenure.
To further streamline the process, the Labour Ministry has implemented a new digital framework, enabling quicker and more convenient withdrawals.
Why Was the Withdrawal Limit Raised?
The decision to increase the withdrawal limit was influenced by rising expenses for emergencies such as medical treatments and family events like weddings.
“People often rely on their EPFO savings for big expenses, and we’ve now enhanced the withdrawal limit to Rs 1 lakh at a time,” Mandaviya explained during the government’s milestone event.
The provident fund system is a critical savings mechanism for over 10 million organized sector employees, offering an interest rate of 8.25% for FY24.
Read More: How to apply online for partial EPF withdrawal: A step-by-step guide
More Updates to PF Rules on the Horizon
Mandaviya also hinted at further changes, including raising the income threshold for mandatory provident fund contributions. Currently, employees earning up to Rs 15,000 are required to contribute, but this limit will soon be increased. The income cap for Employees’ State Insurance (ESI) contributions, now at Rs 21,000, will also be revised.
“For employees earning over Rs 15,000, we are introducing flexibility, allowing them to choose how much of their income they want to set aside for retirement and pension benefits,” Mandaviya said.
Read More: EPF Pension Scheme: Eligibility, Financial Security, and Tax Benefits explained
How to Withdraw Your PF Funds
Here is a step-by-step guide to withdraw your PF online:
1. Check Eligibility
Ensure your reason for withdrawal qualifies, such as medical emergencies, education, or family needs.
2. Log in to EPFO Portal
Visit the EPFO Member e-SEWA Portal and log in with your UAN, password, and captcha.
3. Access Online Claim SectionNavigate to the ‘Online Services’ tab and select ‘Claim (Form-31, 19, 10C & 10D).’
4. Verify Personal DetailsConfirm that your details, including Aadhaar and KYC, are up to date.
5. Submit ClaimChoose Form 31 for partial withdrawal, specify the reason, and upload required documents if applicable.
6. Authenticate with OTPUse the OTP sent to your Aadhaar-linked mobile number to authenticate your claim.
7. Track Claim StatusCheck your claim status under ‘Track Claim Status’ in the portal.
8. Receive FundsUpon approval, funds will be transferred to your registered bank account within 7–10 working days.
For those preferring offline applications, physical forms can still be submitted to regional PF offices. These updates to the provident fund system are designed to offer greater financial flexibility, especially in times of need.
