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EPFO 3.0 Overhauls Withdrawal Rules With Instant 75% Payout on Job Loss and Longer Waits for Full Exit

The reform pairs quicker access to funds with safeguards designed to protect long‑term retirement savings.

Overview

  • Members who become unemployed can withdraw 75% of their EPF balance immediately, with full EPF withdrawal available only after 12 months of continuous unemployment.
  • The minimum service requirement for any partial withdrawal is now a uniform 12 months, with previous purpose‑based categories consolidated and claims expected to be processed largely paperlessly.
  • A mandatory minimum balance rule requires at least 25% of the corpus to remain after withdrawals to discourage premature depletion.
  • Withdrawal frequency caps have been eased, allowing up to 10 claims for education and up to 5 for marriage during service.
  • EPS changes include a 36‑month wait for pension withdrawal after job loss, rollout of a centralized digital pension payment system, and recognition of higher‑pension eligibility where contributions were made on actual salary.