A portion of the salary of people working in the private sector goes into the pension fund (PF). This is managed by the EPFO. Recently, this organization established some withdrawal rules, which have caused an uproar. Opposition parties have called it a blatant theft of salaried class funds. Find out what the government has said on this issue.
New Delhi: The opposition on Wednesday targeted the Modi government over the new rules for withdrawals from the Employees’ Provident Fund . Opposition leaders called the new rules “blatant theft” of salaried people’s money. Meanwhile, Labor Minister Mansukh Mandaviya said the opposition was “misleading” the public. In a post on X, Congress MP Manickam Tagore said, “Pensioners and those who become unemployed are being deprived of their savings. Prime Minister Narendra Modi, please intervene and stop Mansukh Mandaviya from ruining people’s lives.”
Tagore said, “EPFO has decided that you can withdraw PF only after 12 months of unemployment, which was previously possible in two months. Pension will also be withdrawn after 36 months instead of two months. 25% of EPF will be locked forever.” TMC MP Saket Gokhale said, “The new EPFO rules are a blatant theft of salaried people’s money.
What did Mandaviya say?
In response, Mandaviya said on X, “By completely simplifying 13 different categories and their numerous associated conditions, a uniform provision has been created, which will now allow easy withdrawals without any documentation.” He added, “Earlier, withdrawals for marriage and housing were possible only after 5-7 years of service, but now they will be possible after just one year. Withdrawal limits for education and illness have also been made more flexible. In case of any special circumstances or emergency, the entire eligible amount can be withdrawn up to two times a year without any questions asked.”
Meanwhile, the PIB fact check states that the claim that 25% of EPF is locked in until retirement is incorrect. It states that the entire PF balance, including the 25% minimum balance, can be withdrawn upon retirement after 55 years of service, or in the event of permanent disability, retrenchment, voluntary retirement, or permanent relocation abroad.
PIB Fact Check
Upon completion of 12 months of service, the entire PF balance can be withdrawn at any time, except for a minimum balance of 25% . The PIB Fact Check states that approximately 1.09 lakh members who withdrew their entire PF balance in April 2025 re-employed and became new PF members, but lost the benefits of continuous membership. The requirement for pension is 10 years of continuous service.
