8 major changes in EPF partial withdrawal rules and premature final settlement approved by EPFO

The Central Board of Trustees (CBT) of the Employees Provident Fund Organisation (EPFO) has decided to revamp the partial withdrawal rules to enhance the Ease of Living for EPF members. The CBT has also decided to increase the time limit for premature final settlement of EPF and final pension withdrawal.

Here's a look at eight major changes decided by the CBT during its 238th meeting in New Delhi on Monday, October 13, 2025.

Earlier, there were 13 provisions for which partial withdrawals from EPF were allowed. The CBT has decided to merge these provisions into just three reasons for which partial withdrawals will be allowed. There are

• Essential needs
• Housing needs
• Special circumstances

"To enhance Ease of Living of EPF members, CBT decided to simplify the partial withdrawal provisions of EPF Scheme by merging 13 complex provisions into a single, streamlined rule categorized into three types namely, Essential Needs (illness, education, marriage), Housing Needs and Special Circumstances," EPFO said.

EPFO members will now be able to withdraw up to 100% of the eligible balance in the Provident Fund, including employee and employer share.

The CBT has liberalised the withdrawal limits. Now, education withdrawals will be allowed up to 10 times and marriage up to 5 times (from the existing limit of a total of three partial withdrawals for marriage and education in all).

The requirement of minimum service has been uniformly reduced to only 12 months for all partial withdrawals.

EPFO said that earlier, under ‘Special Circumstances,’ the member was required to clarify the reasons for partial withdrawals viz. natural calamity, lockouts/closure of establishments, continuous un-employment, outbreak of epidemic etc. This often led to rejection of claims and consequent grievances. Now, the member can apply without assigning any reasons under this category.

A provision has been made for earmarking 25% of the contributions in the members’ account as minimum balance to be maintained by the member at all times. "This will enable the member to enjoy high rate of interest offered by EPFO (presently 8.25% pa) along with compounding benefits to accumulate a high value retirement corpus. This rationalization enhances ease of access while ensuring members maintain a sufficient retirement corpus," EPFO sid.

The EPFO said that scheme provision simplification, along with greater flexibility and zero need for any documentation, will pave the way for 100 % auto settlement of claims for partial withdrawal and ensure ease of living.

The CBT has also decided to change the period for availing premature final settlement of EPF from the existing 2 months to 12 months and final pension withdrawal from 2 months to 36 months.

"The liberalization of partial withdrawals ensures members can meet immediate financial needs without compromising their retirement savings or pension entitlements," the EPFO said.