In a major relief for salaried employees, the government has revised the Employees' Provident Fund (EPF) withdrawal rules, making it significantly easier for first-time homebuyers to access funds. Under the newly introduced Para 68-BD of the EPF Scheme, 1952, EPFO members can now withdraw up to 90% of their PF corpus for the purchase, construction, or EMI payment of a residential property. This move shortens the eligibility period from five years to just three years from the date of account opening.
Previously, PF withdrawals for housing were limited to 36 months' worth of combined employee and employer contributions plus interest, whichever was lower and only after five years of continuous EPF membership. The earlier rules also restricted members already enrolled in housing schemes. The new rules now give subscribers more flexibility but restrict this housing withdrawal to once in a lifetime.
Additional Major Changes to EPF Withdrawal
EPFO has announced other significant changes to streamline and speed up PF withdrawal:
Instant Withdrawals via UPI and ATM: From June 2025, members can instantly withdraw up to Rs 1 lakh for emergency needs.
Auto Settlement Limit Raised: Automatic claim settlement limit increased from Rs 1 lakh to Rs 5 lakh.
Simplified Claim Process: The number of verification parameters reduced from 27 to 18, with 95% of claims now settled within 3-4 days.
Easier Withdrawals for Life Needs: Processes for education, marriage, and medical-related withdrawals have also been simplified, boosting financial liquidity for employees.
