The central government has responded to questions relating to the 25 percent minimum balance and 36 months waiting period for pension withdrawal.
Lok Sabha MP Kirti Azad raised the question in Parliament regarding the details of the recent amendments notified by the Employees’ Provident Fund Organisation (EPFO) regarding conditions for partial and full withdrawal of provident fund balances and pension accumulations.
He also sought clarity on whether the government has received representations or objections from employees, trade unions or employers regarding the impact of the said new rules on access to workers’ savings, particularly relating to the 25 percent minimum balance and 36 months waiting period for pension withdrawal.
The Parliamentarian further asked whether the government has conducted any review or consultation to assess the implications of the said changes on workers’ financial security and liquidity and the details of corrective or mitigating measures proposed by the Government to address hardship or implementation challenges arising from the said withdrawal restrictions.
Minister Of State For Labour And Employment Shobha Karandlaje, responding to the query said, EPFO has introduced a 12-month waiting period for premature final EPF settlement and a 36-month waiting period for withdrawal benefits under EPS. EPFO has simultaneously liberalized and simplified partial withdrawals and advances. Members can withdraw up to a 75% of their balance under three broad heads—essential needs, housing needs and special circumstances. This enables access to funds for unemployment-related expenses, medical emergencies, education, housing and other critical requirements.
Also members are free to avail 75% of their balance 2 times every year under special circumstances without assigning any reasons.
The Central Board of Trustees (CBT), EPF has representatives from both recognized Trade Unions, Employer Associations as well Government representatives from both Central and State Governments. All the above amendments were placed in the 238th meeting of the CBT wherein the same were discussed and deliberated in detail before recommending the same to the Government of India for notifying the amendments.
EPFO is strengthening grievance redressal, outreach and digital claim settlement to ensure timely disbursal of admissible advances.
