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EPFO 3.0 allows instant 75% withdrawal for unemployed, 12-month service for partial withdrawals, and more withdrawals for education and marriage.
PF Withdrawal Rules.
EPFO 3.0 Updates 2025 Latest News: The Employees’ Provident Fund Organisation (EPFO) has introduced new partial withdrawal rules under the upgraded EPFO 3.0 system, bringing more uniformity and flexibility for subscribers. The decision to amend the scheme was taken by the apex decision-making body of the Employees’ Provident Fund Organisation (EPFO), the Central Board of Trustees headed by Labour Minister Mansukh Mandaviya, in a meeting held on October 13.
Here’s a detailed look at what’s new:
1. Continuous Unemployment
Under the previous rules, members could withdraw 75% of their EPF balance after one month of unemployment and the remaining 25% after two months.
Now, under EPFO 3.0, members can withdraw 75% of their balance immediately, while the full withdrawal can be made after 12 months of continuous unemployment.
2. Pension Withdrawal After Job Loss
Earlier, pension withdrawal was allowed after two months of unemployment. Under the new rules, the waiting period has been extended. Members can now withdraw their pension amount only after 36 months.
3. Lockout or Closure of Establishment
Previously, withdrawals in case of a lockout or closure were limited to not exceeding the employee’s share or up to 100% of the total share.
Now, 75% of the EPF corpus can be withdrawn, while 25% must be retained as a minimum balance.
4. Epidemic or Pandemic
Earlier, members could withdraw up to three months’ basic wages and dearness allowance (BW + DA) or 75% of their balance, whichever was lower. The new rules maintain similar conditions but align them with the new standardised service requirements.
5. Natural Calamity
Previously, withdrawals were capped at Rs 5,000 or 50% of the member’s own contribution with interest, whichever was less. Under the new framework, minimum service tenure for all partial withdrawals, including this category, is standardised to 12 months.
6. Medical Treatment (Self or Family)
Earlier, members could withdraw up to six months’ BW and DA or the employee’s share, whichever was less, and this could be done more than once. The new rules retain this structure but fall under the uniform 12-month service condition.
7. Education and Marriage
Under the old rules, EPF subscribers could withdraw up to 50% of their contribution after seven years of membership. Withdrawals were permitted three times (for education) and two times (for marriage) during their service.
Under EPFO 3.0, the frequency limit has been increased. Education withdrawals allowed up to 10 times, and marriage-related withdrawals up to 5 times during service.
8. Purchase or Construction of House / Purchase of Site
Earlier, this was allowed after 24-36 months of service, up to the total of BW + DA or the cost of construction, whichever was less, and only once.
Now, with the new standardised rule, a minimum of 12 months of service is required for all partial withdrawals.
9. Addition/ Alteration/ Improvement in House
Previously, members could withdraw up to 12 months’ BW and DA or their employee’s share, whichever was less. The same conditions continue under the new uniform system.
10. Housing Loan Repayment
Earlier, members could withdraw up to 36 months’ BW + DA or total balance or outstanding loan, whichever was less, once during their service. The new EPFO 3.0 system retains the same criteria but simplifies the process for digital requests.
11. Purchase of Dwelling House or Flat
Earlier, up to 90% of the total share with interest or cost of acquisition could be withdrawn once. The same conditions remain, with digital processing expected to make transactions smoother.
Key Highlights of EPFO 3.0 Withdrawal Framework
Uniform Service Tenure: The minimum service requirement for all partial withdrawals has now been standardised to 12 months, replacing the earlier range of 2–7 years, depending on the purpose.
Minimum Balance Rule: Members must now retain at least 25% of their EPF corpus after withdrawal.
Frequency Flexibility: The frequency for withdrawals related to education and marriage has been increased, giving members more flexibility during important life stages.
Instant Withdrawal Facility: Under the new system, members facing unemployment can access 75% of their balance immediately, providing crucial liquidity during job loss.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
October 20, 2025, 12:44 IST
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