Union Minister of Youth Affairs and Sports, and Labor and Employment Mansukh Mandaviya on Wednesday highlighted the significant relaxation in the Employees’ Provident Fund Organization (EPFO) rules, making EPF withdrawal easier for employees. According to the new rules, employees who lose their jobs can now immediately withdraw 75% of their EPF amount. The remaining 25% can be withdrawn after one year, ensuring that the employee’s 10-year tenure remains intact. Mandaviya said, “…EPF withdrawal has now been made simpler… If someone loses their job, then 75% of the amount can be withdrawn immediately, and after one year the facility will be available to withdraw the entire amount. The idea behind retaining 25% amount for a year is that the 10-year tenure is not disrupted. With this new service, the service will be reformed and the employee’s service will be reformed. A pension will ensure their social and economic security.” In addition, the government extended the period for the withdrawal of funds after job loss from two months to one year, giving members more time to find a new job and maintain job continuity. What happens to your PF when your company is acquired or restructured? In another important step, businesses that did not contribute to EPFO before can now enroll with a nominal penalty, encouraging more employees to take advantage of social security. Further, to assist elderly and remote EPFO beneficiaries, an MoU has been established with postal services to facilitate authentication and issuance of life certificates at their homes. This ensures that beneficiaries can receive their benefits without having to visit EPFO offices. Opposition chops Center The opposition criticized the government for extending the waiting period for premature final EPF settlement from the current two months to 12 months, and for delaying the final pension withdrawal from two months to 36 months. They also objected to the new rule requiring 25% of the members’ EPF contributions to be kept in the account as a mandatory minimum balance at all times. In a post on X, Congress MP Manickam Tagore said the Modi government’s new Employees Provident Fund Organization (EPFO) rules are nothing short of “cruelty”. “Pensioners and job losers are being punished for needing their own savings. Prime Minister Narendra Modi ji – it’s time to step in and stop Mansukh Mandaviya from destroying people’s lives. “Under the new EPFO decisions, you can withdraw PF only after 12 months of unemployment (earlier 2 months). Pension can only be withdrawn after 36 months (previously 2 months). Twenty-five percent of your own EPF will be locked forever!” he claimed. Tagore said, “Who benefits from this, Mr. Modi? Certainly not the workers. Imagine a worker who loses his job or a retiree who waits for years to access his hard-earned savings – while the government writes off lakhs of crores for his buddies. This is not reform, this is robbery.” He alleged that Labor Minister Mandaviya’s decisions will end the lives of pensioners who depend on EPF for survival. “Prime Minister, please intervene immediately. Don’t let bureaucratic cruelty destroy the dignity of India’s working class,” he said. TMC MP Saket Gokhale said the new EPFO rules introduced by the Modi government are “shocking and ridiculous”. job demands and pensioners being punished. savings. “Claim 1: Of your EPF balance, 25% cannot be withdrawn and will remain LOCKED for your entire career until you retire. Full withdrawal of the entire PF balance (including the minimum balance of 25%) is allowed under a few conditions, such as retirement after attaining 55 years of service, permanent disability, retrenchment, voluntary retirement, or leaving India permanently, etc.,” the fact-checker said. unemployment, said With these new reforms, the employee’s continuity of service will be maintained, and the receipt of a pension will ensure their social and economic security. “Claim 2: EPF has been made mandatory, which means salaried cannot escape this draconian monthly robbery by the government of their own income. The EPF and MP Act 1952 has always been mandatory for all establishments employing 20 persons or more, earning wages less than or equal to ₹15,000 per month,” it said. (With input from ANI)
EPF withdrawal now easier? Union minister Mansukh Mandivya says cash out of 75% as jobs ‘lost’
