EPFO revises PF withdrawal rule: 75% after job loss, rest after 12 months
New Delhi, Oct 16, 2025
EPFO says members can withdraw 75% of their PF immediately after job loss, while the remaining 25% can be taken only after 12 months of continuous unemployment to preserve pension benefits
The Employees’ Provident Fund Organisation (EPFO) has revised the withdrawal timeline for members who lose their jobs, extending the full withdrawal eligibility period from two months to 12 months of unemployment.
What are the new withdrawal rules?
Under the revised rule, EPFO clarified that members can now withdraw up to 75 per cent of their EPF balance immediately after job loss. The remaining 25 per cent can be withdrawn only after 12 months of continuous unemployment.
Earlier, members were allowed to withdraw their full PF balance after two months of leaving a job. However, EPFO noted that this often disrupted continuity in employment records when individuals rejoined work after a short break.
Why was the change introduced?
If a member withdrew the entire EPF amount within two months and then rejoined a new job after three months, their service was treated as non-continuous. This affected their eligibility for pension under the Employees’ Pension Scheme (EPS), which requires at least 10 years of continuous employment.
By extending the full withdrawal period to 12 months, EPFO aims to preserve members’ pension benefits.
How does it affect pension eligibility?
EPFO clarified that withdrawing the entire pension fund leads to loss of EPS membership, making the individual ineligible for family pension or member pension in the future. Even if eligible, the member may receive a lower pension amount due to breaks in contribution.
Fact check
In a post on X, EPFO addressed the myth that unemployed individuals cannot access their provident fund. "Members can withdraw up to 75 per cent of their balance immediately if unemployed, without any waiting period. The remaining 25 per cent can also be withdrawn after 12 months," EPFO said.
“In case of unemployment, 75 per cent PF balance (that includes employer and employee contribution and interest earned) can be withdrawn immediately. Remaining 25 per cent can also be withdrawn after one year. Full withdrawal of the entire PF balance (including the minimum balance of 25 per cent) is also allowed in case of retirement after attaining 55 years of service, permanent disability, incapacity to work, retrenchment, voluntary retirement, or leaving India permanently etc,” a PIB release said.
Pension eligibility remains unchanged
The pension eligibility at the age of 58 remains unchanged under the new rules. A member can take out the money from their pension account any time before completing 10 years of service. However, to receive a pension after retirement, they must complete at least 10 years as a member of the Employees’ Pension Scheme (EPS).
Currently, around 75 per cent of members withdraw their entire pension savings within four years of joining, before reaching the 10-year mark. By doing so, they end their membership and lose access to future pension and social security benefits.
If the pension fund is not withdrawn, the member’s family can still receive pension benefits for up to three years after contributions stop, in case of the member’s death. Once the fund is withdrawn, this family benefit also ends.
[The Business Standard]
