EPFO 3.0: Check 7 Partial Withdrawal Rules For Unemployment, Pension, Advance Claims

The Employees’ Provident Fund Organisation (EPFO) has released EPFO 3.0, introducing new partial withdrawal rules for unemployment, pension and advance claims. The new updates under the EPFO 3.0 aim to expedite access to funds for members. Here are all the latest updates you need to know about the EPFO 3.0 new partial withdrawal rules.

Under the previous rules, members could withdraw 75 percent of their EPF balance after one month of unemployment and the remaining 25 percent could be withdrawn after two months. Under EPFO 3.0, members can withdraw 75 percent of their balance immediately and the full withdrawal can be made after 12 months of continuous unemployment.

As per the earlier rule, pension withdrawal was allowed after two months of unemployment. Under the new rules, the pension amount can be withdrawn only after 36 months of unemployment.

According to the previous rule, in case of lockout or closure, the withdrawal was limited to the employee’s share or up to 100 percent of the total share. Under the new rules, members can withdraw 75 percent of the EPF corpus and the rest of the amount which is 25 percent must be retained as a mandatory minimum balance.

Under the old rules, members could withdraw up to 50 percent of their contribution after seven years of membership. Withdrawals were allowed three times for education and two times for marriage. The new guidelines allow for up to 10 times education withdrawals and up to 5 times marriage-related withdrawals during service.

Earlier, withdrawals were limited to Rs 5,000 or 50 percent of the member’s own contribution with interest. Under the new rule, minimum service tenure for partial withdrawals for natural calamities is standardised to 12 months.

Previously, members could withdraw up to six months’ BW and DA or the employee’s share which could be done more than once. The new rules maintain this framework but apply the uniform 12-month service condition.

Previously, under ‘Special Circumstances,’ the member was required to explain the reasons for partial withdrawals for natural calamity, closure of establishments, continuous unemployment and outbreak of epidemic. Now, the member can apply without providing any explanations for this category.