What’s New in EPFO Withdrawal Rules (2025)


What’s New in EPFO Reforms (2025)

1. Simplified Partial Withdrawal System
- Earlier: 13 separate withdrawal types.
- Now: Merged into 3 simple categories — faster and easier processing.

2. Shorter Partial Withdrawal Eligibility Period
- Earlier: Minimum service period for withdrawal was up to 7 years.
- Now: Only 1 year of service required for all withdrawal types.

3. Higher Partial Withdrawal Limit.
- Earlier: Could withdraw only employee share + interest (50–100%).
- Now: Can withdraw 75% of total amount (including employer share + employee share + interest).

4. Protection of Retirement Corpus.
- Must retain 25% in account to build minimum savings for retirement and benefit from compounding (8.25% interest).

5. EPF Final Withdrawal in case of Unemployment.
- Earlier: Full PF accumulation withdrawal after 2 months of unemployment.
- Now: 75% can be withdrawn anytime without documentation. Remaining 25% can be withdrawn after One year of Unemployment.
- Full withdrawal still allowed in special cases, retirement (55+), disability, retrenchment, or leaving India permanently.

6. Revised EPS Final Withdrawal (Pension) Rules
- Earlier: Pension withdrawal allowed after 2 months of leaving job if pension membership below 10 years.
- Now: Allowed after 36 months, to encourage members to stay in the scheme till they complete 10 years for pension eligibility.

Comments

Post a Comment

Popular posts from this blog

Mandatory Upload of Photos for ESIC - IP Registration

Image
ESIC has made it mandatory for employers to upload photographs of the Insured Person (IP) and their family members as per the updated guidelines. The photographs must be clear, recent, and under 100KB in size. Without these photos, the IP cannot be registered, and family members cannot be added to the records. Failure to comply may cause issues during the claim process, potentially delaying or preventing claims for the IP. To comply with this requirement, employers should: 1. Collect Photos: Obtain clear, recent photographs of the IP and their family members, ensuring they are under 100KB in size.     2. Update Records: Store the photos in the employee records. 3. Upload to ESIC Portal: Upload the photographs to the ESIC portal to register the IP and add family members. 4. Train Staff: Ensure HR and payroll staff are aware of the new requirements and understand how to implement them. 5. Update Systems: Modify payroll or HR systems to capture, store, and submit ...
Read more

Impact of PF Transfer Simplification on Organisations (EPFO Circular dated 15-01-2025)

Image
The Employees' Provident Fund Organisation (EPFO) issued a circular on January 15, 2025, simplifying the Provident Fund (PF) transfer process when employees change jobs. The requirement to route online PF transfer claims through either the past or present employer has been removed in specific cases. This change is expected to make the process more efficient and reduce delays.   Key Changes Introduced The simplification applies to the following transfer cases:   1. Transfers between Member IDs linked with the same UAN    - The Universal Account Number (UAN) was allotted on or after 01-10-2017.      - The UAN is linked with Aadhaar.   2. Transfers between Member IDs linked with different UAN's    - The UANs were allotted on or after 01-10-2017.      - The UAN's are linked with the same Aadhaar.   3. Transfers between Member IDs linked with the same UAN (before 01-10-2017)  ...
Read more