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Government Defends Overhaul of EPFO Withdrawals as Opposition Condemns New Waiting Periods

Officials say retaining a quarter of balances for a year preserves the 10-year service record required for pension eligibility.

Overview

  • Labour Minister Mansukh Mandaviya said employees who lose jobs can withdraw 75% of their EPF immediately, with the remaining 25% available after 12 months.
  • The revised rules extend premature final settlement to 12 months for EPF and 36 months for EPS pension withdrawals.
  • EPFO publicly responded to criticism from Asaduddin Owaisi, reiterating that the one-year retention aims to protect continuous service for pension.
  • Partial withdrawals are broadened under three categories—Essential Needs, Housing Needs, and Special Circumstances—with higher frequencies and eligibility after 12 months of service.
  • The rollout includes allowing previously non-contributing establishments to enroll with a nominal penalty and a postal MoU to provide home life-certificate services.