How will new EPF withdrawal rules affect salaried class?

THE Employees’ Provident Fund Organisation (EPFO) has approved members to access up to 100% of their eligible fund balance, subject to a mandatory minimum balance cushion.

- PUSHPITA DEY @New Delhi

While most relaxations are likely to ease the process of withdrawal, experts cautioned that this move will dilute the safety net of lower and middle income group for their retirement period. Major relaxations include reducing minimum service requirement for withdrawals to just 12 months across all categories—down from previously diverging thresholds (5-7 years for education, marriage, or housing). Under the new rules, subscribers must retain 25% of their total EPF corpus in the account at all times, meaning effectively a maximum withdrawal of 75% during their active employment.