The Employees' Provident Fund Organisation (EPFO) has introduced several new measures aimed at easing financial access for its members. Previously, employees faced restrictions on utilizing funds in their PF accounts during emergencies. Now, with the revised rules, these barriers have been removed. According to the latest update, members can make up to 10 partial withdrawals for educational purposes and 5 withdrawals for marriage-related expenses, compared to the earlier limit of just 3. This adjustment offers employees greater flexibility to meet crucial financial needs like education and weddings.

Earlier, withdrawals were permitted only for specific situations, such as natural calamities, job loss, or medical emergencies. EPFO has now eliminated this restriction, allowing members to access their funds as per their individual requirements. Despite this relaxation, officials have emphasized that a minimum of 25% of the PF balance must remain untouched. This measure ensures that retirement savings are preserved, safeguarding the financial future of employees.

The eligibility criteria for withdrawals have also been relaxed, with the minimum service period reduced from 5 years to just 12 months. This means that employees can now access a portion of their PF funds after completing one year of employment. Experts believe this change will be particularly beneficial for private-sector workers. Analysts note that these reforms not only enhance financial convenience but also make the EPFO framework more flexible and responsive to modern-day employee needs. Overall, the new rules are considered a timely step in aligning the provident fund system with the lifestyle and requirements of today’s workforce.