EPFO's New PF Rules Explained: Faster withdrawals, three-day settlement and other key changes

India’s Employees’ Provident Fund Organisation (EPFO) has overhauled its rules to make the system faster, simpler and more accountable. Under the new framework, complete PF withdrawal claims must be settled within three days, while pension and Employees’ Deposit‑Linked Insurance (EDLI) claims are processed within 20 days. Officials who delay claims without a valid reason will face a 12% annual penal interest that can be recovered from their salary. The changes also allow workers who lose their jobs to withdraw up to 75% of their PF balance immediately, reduce the minimum service requirement for many advance withdrawals to 12 months, and lower the age for full withdrawal from 58 to 55 years, with additional full‑withdrawal options for permanent disability, retrenchment, voluntary retirement and permanent migration.

The new rules streamline withdrawal categories from 13 to three—illness, education and marriage—while keeping housing‑related withdrawals separate. EPFO is moving toward a largely paperless system, requiring employers to facilitate online filing of claims and applications, and introducing Unified Payments Interface (UPI) withdrawals to speed up payments. These reforms aim to modernise India’s social security system, reduce paperwork, improve transparency, and give employees quicker, more flexible access to their savings.

(Source：Google News)