EPFO Board Approves Major Member-Centric Reforms

On 13th October 2025, the Central Board of Trustees (CBT) of the Employees’ Provident Fund (EPF), chaired by Union Labour and Employment Minister, approved sweeping reforms aimed at enhancing member convenience, simplifying withdrawal norms, reducing litigation, and accelerating digital transformation under the EPFO 3.0 initiative.

The Board approved the simplification of partial withdrawal provisions by merging 13 complex clauses into three broad categories — Essential Needs (education, illness, marriage), Housing Needs, and Special Circumstances — making the process easier and faster for members.
Members will now be allowed to withdraw up to 100% of the eligible balance, covering both employee and employer contributions, with the minimum service requirement uniformly reduced to 12 months across all categories.
The reforms introduce liberalized limits, including allowing education withdrawals up to ten times and marriage withdrawals up to five times, compared to the earlier combined cap of three withdrawals permitted.
To preserve long-term savings, the EPFO has mandated that members must retain a minimum of 25% of their balance to ensure continued interest accrual at the current rate of 8.25%.
The CBT also approved the launch of the ‘Vishwas Scheme,’ designed to resolve ₹2,406 crore worth of long-pending penal damage litigations related to delayed provident fund remittances, which currently involve over 6,000 legal cases.