Many major decisions were taken in the meeting of the Central Board of Trust of the Employees Provident Fund Organization (EPFO) held on October 13. Some rules have been relaxed while others have been made a little stricter. The decisions that are most discussed and concerned about are the extended period for withdrawing the entire amount from EPF and the rule of maintaining a certain minimum balance at all times. First of all, let us talk about those rules which have been relaxed.
The Central Board of Trust (CBT) of EPFO has given major relaxation to the members in the rules for partial withdrawal i.e. withdrawal of money to some extent. Withdrawal up to 100 percent of the eligible amount has been allowed. The Labor Ministry has said in a statement that now EPFO subscribers will be able to withdraw up to 100 percent of the eligible balance in their provident fund including employee and employer’s share under partial withdrawal. Apart from this, the minimum service period for all types of partial withdrawals has been reduced to 12 months.
Now there is no need to give reasons for withdrawal in special circumstances
Along with this, to simplify the complex 13 provisions of partial withdrawal, 3 categories have now been created. These categories are- essential needs such as illness, education, marriage; Housing needs and special circumstances. Now EPFO subscribers will be able to withdraw their EPF 10 times for education and 5 times in case of marriage. Till now this could be done only 3 times in both the cases. Now there will be no need to give any reason for withdrawing money in special circumstances. Earlier the reasons had to be clarified, such as natural disaster, closure of establishment or company, continuous unemployment, outbreak of epidemic etc. Due to this, claims were often rejected.
But now you will never be able to keep your EPF account empty.
EPFO has also decided that members will always have to maintain 25 percent of their contribution amount as minimum balance in the EPF account. This will help in raising retirement funds. Fixed interest will continue to be received. This minimum balance should be maintained in the EPF account at all times.
How long will you have to wait to withdraw full money and pension?
EPFO has now decided that if an employee or EPFO member wants to withdraw the entire amount of EPF before maturity in case of unemployment, then the period between his becoming unemployed and withdrawing the money should now be 12 months. That means he will be able to make full withdrawal only after 12 months. Earlier this period was 2 months. Similarly, in case of withdrawal of full pension, a person will now have to wait for 36 months instead of 2 months. The EPFO CBT meeting was chaired by Union Labor Minister Mansukh Mandaviya.
These decisions were also taken
EPFO’s CBT has also decided to implement ‘Vishvas Scheme’. Its purpose is to reduce the penalty for delay in EPF contribution and to eliminate pending cases. Under the Vishwas scheme, the penalty rate has been capped at 1 per cent per month. This scheme will be applicable for six months and can be extended for another six months if needed.
Apart from this, an agreement has also been made with ‘India Post Payments Bank’. Under this, now digital life certificate can be issued to pensioners of Employees Pension Scheme, 1995 (EPS-95) at home. The fee for each certificate will be Rs 50, the burden of which will be borne by EPFO.
Deadline for filing EPF returns extended
EPFO has extended the deadline for filing EPF returns or ECR (Electronic Challan-cum-Return) for the month of September by one week to October 22, 2025. In a statement, the Labor Ministry said that it is mandatory for employers to submit ECR by the 15th of every month. EPFO has introduced a revised ECR system, which will be applicable from the salary month of September, 2025. In view of the difficulties being faced in adopting it, it has been decided to extend the date of filing ECR for the September salary month to October 22, 2025.