The Central Government has announced good news for EPFO account holders by simplifying the rules for provident fund (PF) withdrawals. Under the new regulations, employees who have completed just 12 months of service can now withdraw up to 75% of their PF balance. The Ministry of Labour and Employment has also merged all 13 types of partial withdrawals into one unified rule to remove the previous complications that caused frequent rejections. The eligibility period for all types of withdrawals has now been standardized to 12 months.

According to the new guidelines, the withdrawal amount will now include both the employee’s and the employer’s contributions, resulting in a higher total payout. In cases of unemployment, employees can immediately withdraw up to 75% of their PF balance. However, to ensure long-term financial stability, 25% of the balance must remain in the account until retirement. The government has also extended the waiting period for withdrawing pension funds from two months to 36 months, ensuring that more employees qualify for pension benefits without affecting their eligibility.