New Delhi, July 17: In a major move that could bring relief to over 7 crore Employees’ Provident Fund Organisation (EPFO) members, the Centre is reportedly considering a proposal to allow full or partial withdrawal of EPF savings after 10 years of service. According to a Moneycontrol report, the retirement fund body has floated this idea to address the needs of those who wish to exit the formal workforce earlier than the official retirement age of 58.

Currently, EPF members can withdraw their full balance only upon retirement or after remaining unemployed for over two months. However, many individuals either shift careers in their mid-30s or 40s or are unable to stay in regular employment for various personal reasons. This change, if implemented, will offer such individuals access to their hard-earned savings without waiting until retirement. PF Withdrawal Online via UPI: EPFO in Discussion With NPCI To Introduce UPI-Based EPF Withdrawals Soon, Check Details.

Why the Change in EPF Rules is Timely and Necessary

A large segment of EPFO members never remain employed in the formal sector until retirement. Career shifts, early retirement plans, entrepreneurship, or family obligations often lead individuals to leave regular jobs well before 58. The proposed flexibility in withdrawal norms will particularly benefit those who have served 10 years or more but do not wish to or cannot continue working in the formal sector. EPFO 3.0 Will Allow Subscribers To Withdraw PF From ATMs, App Launch Likely by May or June This Year.

Experts view the proposal as progressive and people-centric. It aligns with the growing trend of early financial independence, freelancing, and startup culture in India, especially among the younger generation.

Key EPFO Changes in Recent Years

The Centre has taken several steps to ease the withdrawal and claim process under EPFO:

  • Instant Withdrawal via UPI: Members can now withdraw up to ₹1 lakh instantly through UPI or ATM in emergencies.

  • Auto-Settlement Increased: The claim auto-settlement limit has been raised from INR 1 lakh to INR 5 lakh.

  • Fewer Documents Required: Required documents have been reduced from 27 to 18, speeding up the process to 3–4 days.

  • Withdrawal for Housing: 90% of funds can be withdrawn for home purchase after 3 years of service.

  • EPFO 3.0: A new digital interface will offer services via UPI, mobile app, ATM cards, and online tracking.

  • CPPS: Pensioners can receive pensions from any bank branch under the Centralised Pension Payment System.

While the Centre has not made an official announcement yet, the proposal is reportedly under serious consideration and may soon be implemented.

(The above story first appeared on LatestLY on Jul 17, 2025 09:00 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).