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Changes in employees’ PF rules explained
The New Indian Express Villupuram
|October 20, 2025
Rationale behind keeping 25% of accumulated sum locked is to ensure a retirement corpus, says labour ministry
THE recent changes to the Employees’ Provident Fund Organisation (EPFO) rules, which now mandate a 25% minimum balance and a waiting period of one year before withdrawal, have created confusion among the salaried and also drawn criticisms from the opposition parties.
However, the government released a fact sheet to simplify the regulations for the masses and clarify the confusion around the same. One of the major points of doubt was that 25% of the employees’ accumulated sum had been locked and withdrawal has been restricted for a year, which was previously restricted for two months.
“Earlier, there were 13 different categories with numerous conditions under which money used to get locked. These have now been completely simplified into one uniform provision, making it much easier to withdraw money without any documentation,” said labour ministry in a statement.
This story is from the October 20, 2025 edition of The New Indian Express Villupuram.
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