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Some PF rules eased, others made stringent
Hindustan Times Mumbai
|October 15, 2025
The Union labour ministry's latest reforms to facilitate urgent cash withdrawals by employees from their provident-fund accounts have simultaneously imposed tighter procedures and longer wait times in certain cases, according to details ratified by a statutory body on Monday.
The reforms introduce a minimum balance of 25% of total funds, to be maintained until a person remains in employment.
(MINT)
Experts appeared divided on the changes that merged 13 provisions, which allow formal-sector workers to make “partial withdrawals”. Although withdrawal rules have been eased and standardised, longer lock-in periods have been introduced for final settlements.
Longer wait times may exacerbate financial emergencies under certain situations, according to some analysts.
The reforms also introduced a new mandatory minimum balance of 25% of total available funds , which must be maintained until a person remains in employment.
This story is from the October 15, 2025 edition of Hindustan Times Mumbai.
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