Updated Oct 13, 2025 18:10 IST
EPFO Board Meeting Today Outcome: CBT approves liberalised partial withdrawals for members (Image: ET Now/File)
EPFO Board Meeting Today Outcome : CBT approves simplified and liberalised partial withdrawals to enhance member convenience and retirement security. Union Minister for Labour and Employment and Youth Affairs Mansukh Mandaviya on Monday has chaired the 238th meeting of Central Board of Trustees (CBT), EPF . To enhance the ease of living of EPF members, CBT decided to simplify the partial withdrawal provisions of the EPF scheme by merging 13 complex provisions into a single, streamlined rule categorised into three types, namely, essential needs (illness, education, marriage), housing needs and special circumstances.Now, members will be able to withdraw up to 100 per cent of the eligible balance in the Provident Fund, including the employee and employer share.Withdrawal limits have been liberalised—education withdrawals are allowed up to 10 times and marriage up to 5 times (from the existing limit of a total of 3 partial withdrawals for marriage & education in all).The requirement of minimum service has been uniformly reduced to only 12 months for all partial withdrawals.Earlier, under ‘Special Circumstances’, the member was required to clarify the reasons for partial withdrawals, viz. natural calamity, lockouts/closure of establishments, continuous unemployment, outbreak of epidemic, etc. This often led to rejection of claims and consequent grievances. Now, the member can apply without assigning any reasons under this category.A provision has been made for earmarking 25 per cent of the contributions in the members’ account as a minimum balance to be maintained by the member at all times. This will enable the member to enjoy the high rate of interest offered by EPFO (presently 8.25 per cent pa) along with compounding benefits to accumulate a high-value retirement corpus. This rationalisation enhances ease of access while ensuring members maintain a sufficient retirement corpus.Scheme provision simplification along with greater flexibility and zero need for any documentation will pave the way for 100 per cent auto settlement of claims for partial withdrawal and ensure ease of living.Complementing the above, it is also decided to change the period for availing premature final settlement of EPF from the existing 2 months to 12 months and final pension withdrawal from 2 months to 36 months. The liberalisation of partial withdrawals ensures members can meet immediate financial needs without compromising their retirement savings or pension entitlements.The Board approved the signing of a Memorandum of Understanding (MoU) with India Post Payments Bank (IPPB) to provide Digital Life Certificate (DLC) services to EPS 95 pensioners at their doorstep. The service will cost Rs 50 per certificate, with the entire cost borne by EPFO.This initiative will enable pensioners, especially those in rural and remote areas, to submit their life certificates from the comfort of their homes, free of charge, through IPPB’s vast postal network.This partnership aims to simplify the lives of elderly pensioners, ensure timely pension disbursement, expedite family pension disbursement, and improve accuracy under the Centralized Pension Payment System (CPPS).Vishwas Scheme’ launchedAccording to PIB, Under Vishwas Scheme, the rate of penal damages will be reduced to a flat rate of 1 per cent per month, except for a graded rate of 0.25 per cent for default up to 2 months and 0.50 per cent for default up to 4 months. The scheme shall remain in operation for six months and is extendable by another six months.
The scheme covers ongoing litigation cases under Section 14B (pending in CGIT, High Courts, or Supreme Court), Finalised but unpaid 14B orders, Pre-adjudication cases (where notice has been issued but final order is pending). All cases pending shall stand abated, in case of compliance under the ‘Vishwas Scheme.’
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