EPFO Eases Withdrawal Rules for Unemployed Members

In a significant policy shift, unemployed members of the Employees' Provident Fund Organisation (EPFO) can now benefit from more flexible withdrawal options for their provident and pension funds. This change follows a decision by the organization's apex body, the Central Board of Trustees, chaired by Labour Minister Mansukh Mandaviya.

Previously, the existing scheme allowed members to withdraw their funds from both the provident and pension accounts after just two months of unemployment. However, the recent amendment extends this period to 12 months for provident funds and 36 months for pension accounts, allowing members to uphold social security benefits more effectively.

A senior official noted that with these changes, unemployed workers who generally lose out on pension benefits due to short gaps in employment will now have better access. A new provision ensures that 25% of the contributions remain in the account to earn consistent high-interest rates, currently at 8.25% annually, helping members secure a robust retirement corpus.