The central government is preparing to make a big and historic change in the rules of the Employees’ Provident Fund (EPF). This change will be no less than a boon for millions of employed people. Now, EPF account holders will be able to withdraw a large part or even the entire amount of their deposits every 10 years. Yes, you heard it right.

Now you will not have to wait till retirement to withdraw your hard-earned money. According to a report by the Economic Times, the government is seriously considering this proposal of the Employees’ Provident Fund Organization (EPFO), so that employed people can use their savings according to their needs. This is a move that can open a new path towards financial freedom.

What the current rules say

At present, there are only two ways to withdraw the entire amount from EPF, and both are quite stringent. You get your full EPF amount only when you retire at the age of 58. If you remain unemployed for more than two months, you are entitled to withdraw your entire EPF amount.

Apart from these, partial withdrawal is allowed only for certain specific needs, such as buying a house, treatment of a serious illness, marriage, or children’s education. But, with the new proposal, this current strictness may almost end, giving employees more access to their savings.

Youth will get big relief

If this new rule comes into effect, young employees will also be able to withdraw their EPF amount even at the age of 30 or 40. However, according to a government official, the government may limit the withdrawal to 60% instead of the entire amount. This proposal is still under consideration. This means that young employees will be able to use their funds for their needs, such as buying a house, pursuing higher education, or starting their own business.

According to government officials, the purpose of relaxing the EPF rules is to enable account holders to use their money easily. The proposal to withdraw every 10 years is also part of this thinking. The government wants people to be able to use their hard-earned money according to their needs, so that their financial condition can improve and they can achieve big financial goals.

Advantages and disadvantages

Experts are divided about this change. Some experts are not very excited about this change. They argue that the real purpose of EPF is to create a secure fund for retirement. Due to frequent withdrawal exemptions, people may reduce future savings. “Such rules have to be made very thoughtfully, so that small needs do not outweigh the security of retirement.” He believes that this can affect long-term financial security. He believes that this will increase the flow of money in sectors like real estate, which will benefit the economy. But, he also says that frequent withdrawals can reduce savings for retirement.

The IT system may be burdened

Experts have warned that to implement this new rule, EPFO will have to strengthen its IT system further. The current system is probably not fully prepared to handle such a large number of withdrawal requests. If there is a glitch in the system, the risk of fraud may also increase. EPFO has to ensure that its technical capabilities are able to handle these changes efficiently.

Other facilities provided by EPFO

EPFO has also recently given some more relief, which is beneficial for account holders. From July 2025, account holders will be able to withdraw up to 90% of their EPF amount to build a house or buy land. The earlier 5 years of contribution were required for this, which has now been reduced to 3 years. This is a big relief for those who want to buy their own house. Apart from this, the auto-settlement limit has been increased from ₹ 1 lakh to ₹ 5 lakh. This will ensure quick availability of funds in case of emergency, providing immediate financial assistance to people.

What is EPF

Employees Provident Fund is one of the largest retirement savings schemes in India. In this, both the employee and the employer deposit a part of their salary, on which interest is also received. Its main objective is to provide financial security after retirement. If this new rule is implemented, it will be the biggest and far-reaching change in the history of EPF. This will definitely give a new direction to the financial future of the employees.