Lost your job? Here’s how much EPF you can withdraw right away

New Delhi: Union Minister of Youth Affairs and Sports, and Labour and Employment, Mansukh Mandaviya, on Wednesday detailed key relaxations in Employees' Provident Fund Organisation (EPFO) rules, aimed at making EPF withdrawals easier for employees.

Under the revised guidelines, employees who lose their jobs can now withdraw 75% of their EPF balance immediately, with the remaining 25% available after one year. This ensures that the employee’s 10-year service tenure remains unaffected.

Mandaviya said, "...EPF withdrawal has been made simpler now...If someone loses their job, then 75% of the amount can be withdrawn immediately, and after one year, the facility to withdraw the entire amount will be available. The idea behind retaining 25% amount for a year is that the 10-year service tenure is not disrupted. With these new reforms, the employee's service continuity will be maintained, and receiving a pension will ensure their social and economic security."

The government has also extended the window for withdrawing EPF funds after job loss from two months to one year, giving employees more time to secure new employment while maintaining service continuity.

In another move to widen social security coverage, establishments that have not contributed to EPFO previously can now enrol with a nominal penalty, allowing more workers to access benefits.

To support senior citizens and beneficiaries in remote areas, the EPFO has signed an MoU with postal services to enable home-based authentication and issuance of life certificates, reducing the need for beneficiaries to visit EPFO offices in person.