Employees Provident Fund Organization i.e. EPFO has recently announced many major changes (EPFO Rule Change) including making withdrawals from PF Account easier. But, the opposition is now targeting the government regarding some of these changes. Among these, especially the issue of mandatory 25% minimum balance in PF account and increasing the period of premature final settlement from 2 months to 12 months is becoming a reason for protest. However, amidst the allegations of the opposition, the picture has also been clarified by the government. However, no update has been given regarding the timeline for implementation of all these changes.
epfo made many major changes
First of all, let’s talk about what changes EPFO has announced recently. So, let us tell you that while the organization has decided to eliminate the hassle of documentation by simplifying the process of withdrawal of money deposited from the PF account, it has given permission to the members to withdraw 75% of the amount leaving the minimum balance in the account. Let us understand the major changes in five points…
- The timeline for pre-mature final settlement (i.e. settlement on leaving or leaving the job) has been increased from the existing two months to 12 months, while in the case of pension, it has been increased from two months to 36 months.
- In the 238th meeting of CBT, now permission has been given for the members to easily withdraw the entire amount except 25% minimum balance in the account. Earlier this was applicable only in case of unemployment or retirement.
- EPFO has pf To make withdrawal easier, we have removed the hassle of documentation and giving reasons. Now there will be no need to give any reason for withdrawing money.
- Now you will be able to withdraw PF 10 times for education and 5 times as per requirement for marriage. Earlier this limit was limited to 3 partial withdrawals.
- For partial withdrawal, the limit of service tenure in different cases has been unified and its new limit has been fixed at 12 months.
Government’s claim, opposition’s allegation
The Employees Provident Fund Organization has approved comprehensive changes in the rules of PF Withdrawal Rule, citing the objective of improving long-term retirement savings. But this step has also started a series of political allegations and counter-allegations. Opposition parties have termed these reforms of the government as harsh and punishing salaried employees. On the other hand, the Union Labor Ministry says that the revised new infrastructure works to strengthen the social security of lakhs of employees.
Officials associated with the ministry say that keeping 25 percent of the total PF fund locked will only be beneficial. He said this change will ensure that members can continue to enjoy the robust annual interest rate of 8.25% offered by EPFO. Which will be ready as a retirement fund with compounding. On behalf of Congress, Lok Sabha MP Manikam Tagore also expressed his protest against this by tweeting.
The Modi Govt’s new EPFO rules are nothing short of cruelty.
Pensioners and job-losers are being punished for needing their own savings.
Prime Minister @narendramodi ji — this is the time to intervene and stop @mansukhmandviya from destroying people’s lives.Under the new…
— Manickam Tagore । October 15, 2025
Saket Gokhale said- ‘Problem due to 25% money being locked’
Taking issue with this minimum balance rule, Trinamool Congress MP Saket Gokhale argued that the new rule effectively locks up one-fourth of an employee’s hard-earned money till retirement. He wrote on his ex-post, ‘Imagine that you lose your job, but you still have to pay bills and EMIs, then now the government will not let you withdraw your money for a whole year.’ He wrote that even in such a situation, you will be able to withdraw only 75%, while you remain unemployed.
Target aimed at increasing settlement tenure
Saket Gokhale raised another issue regarding the change in EPFO rules. He criticized the timeline for premature full withdrawal from 2 months to 12 months, while the timeline for pension withdrawal under the EPS-95 scheme has been increased from 2 months to 36 months. Gokhale said in his post that this decision will unfairly limit employees’ access to their savings. Earlier, on leaving the job, you could withdraw your EPF balance after 2 months, now you will have to wait for a year. He said that now you will have to remain unemployed for a whole year to withdraw your money.
The new EPFO rules introduced by the Modi Govt are SHOCKING AND RIDICULOUS. It is open THEFT of salaried people’s own money.
Here’s what the new rules say:
👉 Earlier, on losing your job, you could withdraw your EPF balance after 2 months of employment. That minimum period has…
— Saket Gokhale MP (@SaketGokhale) October 15, 2025
This is the stand of the government on the attack of the opposition
While Trinamool Congress MPs have criticized the government’s decisions, according to CBT officials, the decision is aimed at protecting long-term savings and discouraging premature withdrawals, which deplete retirement funds. According to reports, experts also believe that EPFO members can now utilize their entire eligible funds for their actual needs. Along with this, you can also keep a safe portion for retirement.
EPFO clears picture on opposition’s opposition
However, EPFO has stated clearly what will change with these changes, terming the opposition’s opposition as baseless. social media EPFO on Platform X termed as wrong the notion that unemployed members cannot withdraw their PF amount. The organization said that the fact is that in case of unemployment, members can withdraw up to 75% from their PF account immediately without any waiting period, while the remaining 25% amount can be withdrawn after 12 months.
It has also been clarified by the Ministry of Labor and Employment that permission to withdraw the entire amount of the PF account including the minimum balance will still be given in specific cases, which include cases like retirement after the age of 55, retrenchment, permanent disability.
Changes in pension matters are so beneficial
The most talked about change is in the Employees Pension Scheme (EPS-95). Under the new rule, now members will be able to withdraw their pension amount only after 36 months of unemployment, whereas earlier this rule was of 2 months. Regarding this, the Labor Ministry has said that the main objective of this change is to encourage EPF members to complete 10 years of service to become eligible for lifetime pension and also to ensure long-term financial security for their families.
The ministry further said that earlier, there was interruption in service due to frequent PF withdrawals, due to which many pension cases were rejected. At the same time, after losing the job, people used to leave their entire EPF membership and later join again, due to which their valuable pensionable service was taken away. This will not be possible with the new rules.
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