PF withdrawal: Government doubles EPFO withdrawal amount; check new limit and more

The Employees’ Provident Fund Organisation (EPFO) has hiked the one-time withdrawal limit from provident fund (PF) accounts. PF account holders can now withdraw ₹1 lakh, doubling the previous limit of ₹50,000.

Union Labour and Employment Minister Mansukh Mandaviya announced the news at a press briefing on Tuesday, September 17.

“People often turn to their EPF savings to meet expenses such as weddings and medical treatment etc. We have enhanced the withdrawal limit to ₹1 lakh at a time,” the minister was quoted as saying in media reports.

“If you are an EPF contributor and there's a family emergency, you can now withdraw a higher amount,” Mandaviya added.

The Union minister explained that the decision will help PF account holders by giving them better financial flexibility when they urgently need money.

Mandaviya further announced another key decision: employees can withdraw their provident fund money within the first six months of starting a new job. “Previously, you had to wait longer, but now, PF contributors can withdraw even in the first six months... it’s their money," he said.

The minister made these announcements on the occasion of the 100th day of the Narendra Modi government's third term.

He also said that the government has been working to improve the operations of the retirement fund management body EPFO to reduce subscribers' hassle.

In another development, pensioners under the Employees’ Pension Scheme (EPS) 1995 will be eligible to access their pensions from any bank branch across the country. The Centralised Pension Payment System (CPPS) will start on January 1, 2025.

The system will benefit over 78 lakh pensioners. The scheme, approved by the government, will not require retired employees to transfer their Pension Payment Orders (PPOs) if they want to move or change banks.

“The approval of the CPPS is a crucial milestone in modernising the EPFO. Pensioners will now enjoy a hassle-free experience, receiving their pensions from any bank branch in the country,” the minister said.