EPF Withdrawal Made Simpler: Mansukh Mandaviya Announces Reforms to Ensure Job Security and Pension Continuity

By A Staff Reporter

New Delhi: Union Minister for Labour and Employment Mansukh Mandaviya on Wednesday announced key reforms aimed at simplifying the process of withdrawing funds from the Employees’ Provident Fund (EPF), ensuring greater flexibility and long-term social security for workers.

Mandaviya stated that the government has made EPF withdrawals simpler and more employee-friendly. “If someone loses their job, then 75% of the amount can be withdrawn immediately, and after one year, the facility to withdraw the entire amount will be available,” he said.

Explaining the rationale behind the reform, the Minister noted that retaining 25% of the amount for a year helps preserve the employee’s 10-year service continuity — a crucial requirement for pension eligibility. “The idea behind retaining 25% amount for a year is that the 10-year service tenure is not disrupted,” he explained.

Mandaviya emphasized that these measures aim to balance immediate financial relief with long-term welfare. “With these new reforms, the employee's service continuity will be maintained, and receiving a pension will ensure their social and economic security,” he added