EPFO simplifies PF withdrawal rules, allows 75% advance

The Employees' Provident Fund Organisation (EPFO) has introduced a simplified framework for partial withdrawals, allowing members to access up to 75 per cent of their provident fund balance for emergencies, health, education, and housing. The remaining 25 per cent stays invested. A minimum membership of 12 months is now standardised for most advances, replacing earlier varying rules across 13 categories. The new system groups withdrawals into three broad classifications: essential needs, housing needs, and special circumstances where no reason is needed. For unemployment, members can access 75 per cent immediately after job loss, with the rest available after 12 months of continuous unemployment. The EPF interest rate for 2025-26 remains at 8.25 per cent.

Livemint reports separately that EPFO rules allow separate PF accounts for each employer when a person holds multiple jobs simultaneously. Employees eligible for PF must ensure compliance with employment contracts, as dual employment may breach non-compete clauses or confidentiality agreements. The Factories Act prohibits dual employment, though IT companies in some states are exempt. EPFO advises employees to first approach their company with PF grievances, and then the regional provident fund commissioner if unresolved. The rules aim to manage overlapping employment periods in service records without compulsion for single membership.