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EPFO might make it easier for you to withdraw funds
23 Sep 2025

The Indian government is mulling over relaxing withdrawal limits for Employees' Provident Fund Organisation (EPFO) members.

The proposed changes are aimed at providing greater financial flexibility to subscribers, especially for purposes such as housing, marriage, and education.

The move comes as part of a broader effort to give members more control over their funds according to individual needs.

Current withdrawal rules
Existing norms

Currently, subscribers can only withdraw their entire EPFO corpus after reaching the retirement age of 58 or if they have been unemployed for over two months.

Other withdrawals are subject to a minimum seven-year service period for up to 50% withdrawal of employee's contribution and interest for marriage purposes.

For housing, members can withdraw up to 90% of their accumulated corpus, provided certain conditions are met.

Benefits and challenges
Expert opinions

Experts believe that relaxing the EPF withdrawal limits or easing eligibility criteria would benefit subscribers, especially those from lower and middle-income groups.

This would give them easier access to funds without having to borrow.

However, they also stress the need for a balance between flexibility and safeguards so that the fund continues to serve its primary purpose of retirement security.

Proposed changes and timeline
Potential impact

The proposed changes, if implemented, could make the EPF scheme even more subscriber-friendly and responsive to real-life challenges.

Aurelia Menezes from King Stubb & Kasiva, Advocates and Attorneys said a balanced framework that protects retirement corpus, while giving the workers greater access to their funds would be a step in the right direction.

However, no official timeline has been given for these potential changes yet.