Key Changes in EPFO Withdrawal Rules
The Employees’ Provident Fund Organisation (EPFO) has significantly extended the waiting periods for unemployment-related withdrawals, sparking strong opposition criticism against the Modi government.
What Changed in EPFO Rules?
- PF Withdrawal: Increased from 2 months to 12 months of unemployment
- Pension Withdrawal: Extended from 2 months to 36 months (3 years)
- Minimum Balance: 25% of contributions permanently locked until retirement
Opposition Slams “Draconian” Provisions
Congress MP Manickam Tagore described the new rules as “cruelty” against salaried employees. “Pensioners and job-losers are being punished for needing their own savings,” he stated, urging Prime Minister Narendra Modi to intervene.
“This is not reform, this is robbery. Who benefits from this, Mr. Modi? Certainly not the workers,” Tagore claimed.
TMC MP Saket Gokhale called the changes “shocking and ridiculous,” labeling them as “open theft of salaried people’s own money.” He questioned how laid-off workers would manage expenses during the extended waiting periods.
“Imagine a person gets laid off or loses their job. They still have bills and EMIs to pay. But the Modi government will not allow you to withdraw your own money for a full year,” Gokhale said.
Government’s Rationale
The Central Board of Trustees headed by Labour Minister Mansukh Mandaviya approved these amendments on Monday. A senior official explained the changes aim to ensure social security benefits for formal sector workers who typically exit EPFO after two months of unemployment.
The official noted that many unemployed youth re-enroll with EPFO when they find new jobs, but lose pension benefits since accounts become pensionable only after combined service of 10 years or more.
Congress spokesperson Shama Mohamed demanded immediate rollback, calling the rules “nothing short of looting the hard-earned money of the salaried middle class.”
