How Much EPF Can Be Withdrawn Immediately? Government Clarification

The Labour Ministry has clarified that employees can now immediately withdraw up to 75% of their Employees’ Provident Fund (EPF) balance upon leaving a job. Contrary to social media claims suggesting restrictions on withdrawals, the ministry confirmed that the new rules actually simplify and expand access to members’ funds.

“If the individual remains unemployed for one year, the entire balance can be withdrawn,” the ministry said in its statement, adding that the move is designed to ensure financial flexibility without hurting long-term savings.

Simpler Rules, Greater Flexibility

Under the new system, the Employees’ Provident Fund Organisation (EPFO) has streamlined its withdrawal process by merging 13 complex categories into a single, uniform framework. This eliminates cumbersome paperwork and delays that previously caused members’ funds to remain stuck.

On simplification of EPFO, Union Minister for Labour and Employment, Mansukh Mandaviya says, "...EPF withdrawal has been made simpler now...If someone loses their job, then 75% of the amount can be withdrawn immediately, and after one year, the facility to withdraw the entire amount will be available. The idea behind retaining 25% amount for a year is that the 10-year service tenure is not disrupted. With these new reforms, the employee's service continuity will be maintained, and receiving a pension will ensure their social and economic security."

The waiting period for withdrawals for purposes such as marriage, housing, and education has been cut from 5–7 years to just one year of service. Members can now withdraw for education up to 10 times and for marriage up to 5 times, while also accessing funds for unforeseen emergencies twice a year without documentation.

Mandatory 25% Cushion for Retirement

To protect retirement savings, subscribers must maintain a minimum of 25% of their EPF corpus in their account, which will continue earning 8.25% annual interest.

The ministry emphasised that withdrawal limits and frequency have been increased, not reduced, and that the reforms will ensure continuity of service records, smoother pension claims, and financial security for employees and their families.