The Employees’ Provident Fund Organisation (EPFO) has introduced a new rule in 2025 allowing an employee to draw part payment from his provident fund account with ease. The intention is to confer some degree of financial flexibility to those who may require partial access to their savings in case of emergencies or consequential expenses.
Key Highlights of the New Rule
Under the amendments introduced in the EPFO Act, an employee can make a part withdrawal from his accumulated balance under EPF scheme without closing his EPF account. Earlier when an individual wanted to withdraw any money, he had to either close the account or undergo a tedious and lengthy process with several rounds of documentation. Now part withdrawal can be applied for online itself and the process is short and swift.
Eligibility Criteria
In case an employee is contributing to the EPF scheme under the employee-side, a withdrawal can be made in part. However, the EPFO has set down certain conditions regarding the minimum balance that must remain in the account and accepted grounds for withdrawal including medical emergencies, education, housing, or repayment of a loan. Employees must validate their eligibility in consideration of these criteria prior to making an application for partial withdrawal.
Apply for Part Payment
An employee can avail himself of the partial withdrawal facility through the respective EPFO member portal or Unified Portal. The procedure includes logging in using your UAN, selecting the withdrawal purpose, and submitting the request online. After approval, which usually takes a few working days, the funds become available for withdrawal.
Advantages of the New EPFO Rule
The updated rule gives better financial security by letting the subscriber withdraw only partly and thus not depleting his or her account fully. A person may pay for an unexpected expense, expenses for emergency situations, or short-term financial goals that do not grossly interfere with the fund for retirement.
Conclusion
The 2025 EPFO rule for part payment is a welcome change for employees all over India. By simplifying the withdrawal process and offering them financial flexibility, workers should ensure they continue to put their money aside for retirement, while also being able to tap a portion of their provident fund anytime they may need it.