Govt explains EPF waiting periods and 75% partial withdrawal rules

The government has changed the rules for the Employees' Provident Fund, a savings plan that helps workers save up for retirement.

It is run by an organisation called EPFO.

Under the new rules, when a worker leaves a job, they must wait 12 months before taking out all of their provident fund savings.

If they want to take the money from the pension part of the plan, they have to wait 36 months, or three years.

The reason is that many workers were closing their pension accounts early and losing their chance to get a pension later.

But workers are not locked out of their money.

They can still take out up to 75 percent of their balance for important needs like medical emergencies, education, housing, or unemployment.

They can even take out 75 percent twice a year without explaining why.

The government explained all this in Parliament after a member of Parliament asked about it.

Officials say the changes were discussed with workers, employers, and government representatives, and they are working to make claiming money faster and easier.