Home / Business and Economy / EPFO Tightens PF Withdrawal Rules, Employees Must Wait 12 Months
EPFO Tightens PF Withdrawal Rules, Employees Must Wait 12 Months
16 Oct
Summary
- EPFO trustees approved new PF withdrawal rules on October 13, 2025
- Members can now withdraw PF only after 12 months of unemployment, up from 2 months
- Pension part can be withdrawn only after 36 months of unemployment
On October 13, 2025, the EPFO trustees approved significant changes to the PF withdrawal rules that will impact millions of workers across India. Under the new guidelines, employees who lose their job can now withdraw their final PF corpus only after 12 months of being unemployed, a significant increase from the previous 2-month timeline.
Additionally, the pension part of the PF can now be accessed only after 36 months of unemployment, compared to the earlier 2-month period. The EPFO stated that these revisions are intended to safeguard retirement savings while still allowing access in times of financial emergencies.
A key change is that members will no longer be able to withdraw their entire PF amount at once. At least 25% of the balance must remain in the account, with only 75% eligible for withdrawal after 12 months of joblessness. This measure ensures that employees continue to earn interest on the remaining funds and do not deplete their retirement savings prematurely.
The EPFO believes these reforms, part of the EPFO 3.0 initiative, will encourage employees to view their PF as long-term savings rather than a source of emergency cash. While the new rules may cause short-term inconvenience, the EPFO hopes they will ultimately benefit workers by protecting their financial future.
