Major Relief For Salaried Employees: EPF Withdrawal May Be Allowed Every 10 Years, Reports

The government is considering a major change in EPF withdrawal rules that could benefit millions of salaried employees. Under the proposed plan, account holders may be allowed to withdraw their full or partial EPF savings once every 10 years—without having to retire or lose their job.

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New Delhi: Salaried employees may no longer need to wait for retirement or job loss to access their Employees’ Provident Fund (EPF) savings. The Centre is considering a proposal by the Employees’ Provident Fund Organisation (EPFO) to ease withdrawal norms. If approved, subscribers could be allowed to withdraw their entire EPF corpus or a portion of it once every 10 years, reported Moneycontrol. 

Currently, EPF members can withdraw the full amount only after retirement, usually at the age of 58 or if they remain unemployed for over two months. Partial withdrawals are allowed but only for specific purposes like buying a house, medical emergencies, education, or marriage.

Starting this month, EPF members can withdraw up to 90 per cent of their savings to buy land or build a house. Earlier, this benefit was available only to those who had contributed to their EPF for at least five continuous years. Now, the eligibility period has been reduced to just three years, making it easier for more people to use their savings for housing.

How EPF Withdrawals Worked Earlier

Full EPF withdrawal was allowed only:

- After retirement (at age 58), or

- If the member was unemployed for more than 2 months

- Partial withdrawals were permitted only for:

- Buying or building a house

- Medical emergencies

- Education expenses

- Marriage-related costs

What’s New in EPF Rules

Now, members can withdraw up to 90 per cent of their EPF balance for housing purposes after just three years of continuous contribution. Earlier, the requirement was five years. The advance claim limit has been increased to Rs 5 lakh, making it quicker and easier to access funds without needing prior approvals.