EPFO New Rules 2025

The Employees’ Provident Fund Organisation (EPFO) has implemented several major rule changes in October 2025 to simplify provident fund (PF) withdrawals, modernize processes, and strengthen pension security for India’s salaried workforce.

Key EPFO Rule Changes (Effective October 2025)

1. Immediate Partial Withdrawal (Up to 75%)
   Members can now withdraw up to 75% of their EPF balance immediately upon job loss. The remaining 25% can be withdrawn after 12 months of unemployment.​
2. Minimum Balance Requirement
   At least 25% of the EPF corpus must remain in the account at all times to ensure ongoing interest accrual and preserve retirement savings.​
3. Simplified Withdrawal Categories
   Thirteen previous withdrawal categories have been merged into just three:
   • Essential Needs (education, illness, marriage)
   • Housing Needs
   • Special Circumstances (flexible withdrawals for emergencies).​​
4. Reduced Service Period
   The minimum service requirement for partial withdrawals has been standardized at 12 months (earlier, it ranged between 5–7 years depending on purpose).​
5. Extended Full Withdrawal Waiting Period
   Full EPF withdrawal is now allowed after 12 months of unemployment (previously 2 months), and pension (EPS) withdrawal can be made after 36 months.​
6. Digital Transformation & Aadhaar Integration
   • Withdrawals can now be auto-processed online via Aadhaar and UAN.
   • From August 2025, face authentication will be introduced for added security.
   • Members can use UMANG and Aadhaar-linked passbook updates for transactions.​​
7. Pension Eligibility & Access
   Employees with 10 years of service remain eligible for pension at age 58, even if unemployed. Partial pension withdrawals are allowed for medical or housing reasons under specific criteria.​
8. Automatic Claim Settlement & Interest Continuity
   • Automatic claim settlements increased from ₹1 lakh to ₹5 lakh.
   • EPF balances continue to earn interest for up to 36 months after job loss; thereafter, the account becomes “inoperative” but remains secure.​

Government Clarification

The Ministry of Labour & Employment emphasized that these rules are designed to simplify procedures, reduce rejections, and protect long-term savings, dismissing social media claims that accused the policy of limiting employee rights.