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In an effort to improve the quality of life for workers, the Central Board of Trustees of the Employees’ Provident Fund Organisation has given the green light to significant changes to make it easier for people to withdraw some of their funds from the EPF Scheme. This action combines 13 complicated rules into a single, simpler framework. The rules for partial withdrawals have been divided into three straightforward categories: Essential Needs (like health issues, education, and marriage), Housing Needs, and Special Situations. This new system replaces the previous complicated set of 13 separate rules, making everything clearer and easier to understand.

Members can now take out up to 100% of their eligible Provident Fund amount, which includes contributions from both themselves and their employers. The maximum amount that can be withdrawn for educational purposes has increased to 10 times the previous limit, and for marriage, up to 5 times—compared to the earlier limit which allowed only 3 withdrawals in total for both reasons. The minimum time worked required to qualify for any partial withdrawal has now been standardized to just 12 months, replacing the differing timeframes that existed before. Previously, to take money out for 'Special Situations,' members had to provide proof of the reason, such as disasters, job loss, or disease, which often led to refusals. Now, members can withdraw money without needing to explain why, allowing quicker access to funds. They must keep at least 25% of their contributions as a minimum balance to protect their retirement savings and keep earning a high interest rate of 8.25% per annum from the EPFO. The full process will not require any paperwork and will be entirely automated, ensuring that claims are processed quickly. Moreover, the timelines for early final settlements and pension withdrawals have been lengthened to encourage saving for the long term.